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I thought it might be interesting to discuss some economic theory considering all the news surround Gamestop, financial markets, and government picking winners and losers in business. My angle on this is the role of government with business.

The above posted article was quickly found in a search, please amend with better definitions. It is not identical what I learned in Econ some some 40 years ago (or my mind is failing me). The definition I learned included "perfect information". (price, quality, product, supply, etc.) It also included "ease of entry and exit" in markets. The above definition lacks the exit part.

I believe that financial markets and business in general should work with market conditions as close to pure competition as possible as it is the purest form of capitalism. Financial markets need to be self-regulated. If they cannot achieve that, then and only then does it require government to step in and provide regulations that moves towards perfect competition. One major caveat to that is: nothing that government does should hinder the ease of entry and exit from markets. This is applicable to government licensing, costs, paperwork, taxes and other red tape.

1 posted on 01/29/2021 6:49:15 AM PST by ConservativeInPA
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To: ConservativeInPA

My angle on this is the role of government with business.


Defining the problem correctly and not making assumptions is important. We tend to manage the past and ignore the present.

The government IS the economy. Name me one area where the government is not involved with subsidy, regulation or direct control.

Take some time to read the Vampire Economy. We are living it. It is an easy read, story like.

https://cdn.mises.org/the_vampire_economy_20201022.pdf


2 posted on 01/29/2021 6:57:25 AM PST by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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