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To: raybbr

You didn’t specifically ‘say’ government, but what is the point charging that business upper echelons are the problem with factory shutdowns and not tacitly implying that government has to do something about it?

There may be that sort of thing going on, but I don’t think it is pervasive.

Regardless, I do not subscribe to the position that business as an entity is bad and the root of our problems. That can be better traced to oppressive government in my opinion.


11 posted on 06/16/2014 5:00:12 AM PDT by Gaffer
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To: Gaffer

Not terribly up on your Adam Smith, are you?

He recognized that businessmen would steal and pillage to the extent they could, just like most people will.

He just recognized that the “invisible hand” would keep the stealing and pillaging within certain bounds. The problem with governmental interference is not that it doesn’t prevent the stealing and pillaging, it’s that it interferes with the invisible hand mechanisms.

For instance, without the government we would still have had a real estate bubble. Bubbles and irrational exuberance are part and parcel of capitalism.

But the implicit government guarantee of these loans caused the bubble to inflate a great deal more before bursting than it would have without that bubble. And then the implicit bailout was carried out, though not consistently. Which of course just encourages future bubbles to expand excessively, whereas if the government had allowed the necessary contraction, investors would be really leery of future bubbles.


12 posted on 06/16/2014 6:10:43 AM PDT by Sherman Logan (Perception wins all the battles. Reality wins all the wars.)
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