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So let me get this straight “The problem is [wages] they have stagnated or fallen measured relative to the price of housing, health care, food and energy or education.”. “The difficulty is that in many of these areas the traditional case for market capitalism is weaker. It is surely not an accident that in almost every society the production of health care and education is much more involved with the public sector than the production of manufactured goods.” So the fact that the stagnating productivity is in areas where government has the most power is an argument AGAINST capitalism?

— Michael Price

Tags: capitalism
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I think that libertarians see liberty as a precursor to the other values, while non-libertarians see liberty *as* one of the values, and has no problem giving up liberty to get more of another value. That’s why the discussion always moves away from the other values to liberty. And that’s why Jeff Sachs thinks libertarians only care about liberty — because when he talks about giving up liberty, libertarians hear him wanting to give up ALL the other values.

— Russ Nelson

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atomicsocialist:

Not at all, it’s because the completely unregulated derivatives market incentivized giving loans to people who couldn’t afford them and would surely default. The exasperated boom and bust practices of the fed which are fairly new did have something to do with the crash however it was mostly because a completely unregulated derivatives market allowed companies to build CDO’s they knew would fail and then bet on their failure. When the market finds a way to incentivize failure and foreclosure, you’re gonna see a whole lot more of it.

You make some good points.
According to Kevin Carson, mortgage-backed securities had been a relatively insignificant market until they were guaranteed by Freddie Mac and reserve requirements were set lower for MBS’s than mortgages held by the originating bank. Since those regulations gave banks an incentive to sell their loans as quickly as possible, their lending standards collapsed.
On a further note, I am reminded of a point of “dialectical libertarianism” that the lack of a regulation does not necessarily mean that the degree of government intervention is smaller. It may be that the regulation in question acts as a limitation on some other grant of government privilege. Removing those constraining regulations would increase the government’s intervention into the economy. I would argue that would be the case with the repeal of Glass-Steagall and reduced lending standards, for example.

atomicsocialist:

Not at all, it’s because the completely unregulated derivatives market incentivized giving loans to people who couldn’t afford them and would surely default. The exasperated boom and bust practices of the fed which are fairly new did have something to do with the crash however it was mostly because a completely unregulated derivatives market allowed companies to build CDO’s they knew would fail and then bet on their failure. When the market finds a way to incentivize failure and foreclosure, you’re gonna see a whole lot more of it.

You make some good points.

According to Kevin Carson, mortgage-backed securities had been a relatively insignificant market until they were guaranteed by Freddie Mac and reserve requirements were set lower for MBS’s than mortgages held by the originating bank. Since those regulations gave banks an incentive to sell their loans as quickly as possible, their lending standards collapsed.

On a further note, I am reminded of a point of “dialectical libertarianism” that the lack of a regulation does not necessarily mean that the degree of government intervention is smaller. It may be that the regulation in question acts as a limitation on some other grant of government privilege. Removing those constraining regulations would increase the government’s intervention into the economy. I would argue that would be the case with the repeal of Glass-Steagall and reduced lending standards, for example.

(Source: turkishbolshevik, via joemccarthyblues)

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What Is Regulatory Capture? (by EconFree)

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Cronyism in America (by EconFree)

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anticapitalist:

You’re implying natural rights, which do not exist. There are no inherent rights associated with being human.

I think you are right to be skeptical of claims to rights. Just so we are on the same page, my understanding of rights is that they are moral principles sanctioning the actions for an individual to take within society.

Just as moral principles are logically derived from Man’s nature as a volitional being to determine which actions promote one’s values on a personal level, moral principles are necessary and logically derived from the fact of Man’s volitional nature to determine which interactions promote one’s values on a social level. Those moral principles necessary for Man (in the capacity of Man as a volitional being capable of reason) for living within society are called rights.

Since you seemingly dispute that an individual has the right to life simply by one’s existence, I would further argue that just as one’s life is the fundamental (or, ultimate) source of one’s values, the fundamental (or, ultimate) source of rights is one’s life.

>”There is no agreement to it. The non-aggression principle exists as a fact of reality whether one acknowledges it or not.”

Prove it. How can a principle exist in reality anyway? Like what does that even mean?

A principle is a proposition that identifies an essential fact. The fact being identified in the non-aggression principle is that Man (in the capacity of Man as a volitional being capable of reason) to live within society must be free to use one’s mind to reason since Man has no automatic (innate or revealed) means of knowledge other than reason.

Coercion (even defensive coercion) is inherently destructive and particularly destructive of thought. This coercion is of moral value when used defensively to destroy destruction, but the initiation of coercion (or, aggression) destroys one’s only means of knowledge, reason, and thus the only means of one’s survival as Man.

>Whether property (which I suppose you to mean the ownership of property) is violent or not, what matters is whether the ownership of property is an act of aggression and against whom if no one owns (in a moral sense) the property in question.

Firstly, you haven’t proven that the non aggression principle is valid/not a social contract.

I elaborated on that point above that why non-aggression principle exist as logically coherent independent of anyone’s acknowledgement of it.

Secondly, you haven’t proven that property is valid/not a social contract.

As I have addressed before, “because people have the faculty of volition (that is, they have the choice to think), a person is responsible for (or has claim to) the consequences of his or her volitional actions. A corollary of this principle of personal responsibility is the principle of property ownership, which is the practical means of rendering the freedom of personal responsibility into effective and material form for life on Earth.”

Property is an act of aggression against all those who use a given amount of property.

You do not object to property ownership. You object to absentee property ownership.

I have addressed this point of absentee property ownership already as well in the post linked above. “An important distinction is that the principle of property ownership does not stem ultimately from a person’s action generally, but from a person’s judgment. With that the case, the passage of time or distance is irrelevant to whether a person remains responsible for his or her actions, so the ownership of property rights is not tied to whether one possesses the property or not.”

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Robinson is still correct in one contention; capitalism doesn’t have a heart.  That’s because capitalism isn’t an entity but a term to describe men, possessing hearts, who engage in enriching trade and production.  If Robinson and his like-minded peers fail to understand the market process, what hope do they have offering suggestions in the first place?

— James E. Miller