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To: DannyTN
"If there were no uncertainties in the system,..."

But there are, and always will be uncertainties. So what? When you realize and accept the consequences of your actions rather than reach out to the nanny state when things get tough, the country will be better off. What circumstance in your life is so dire that gives you the right to go to government (an agency of force) to get them to come to me (to put a gun to my head) to pay for your misfortune? The answer - THERE IS NONE. Personal charity if admirable. Help that is extorted by government force is not.

" But everything from weather to fundamental characteristics of free markets such as the fact that competition tends to drive profits to zero or below..."

WHAT? Since when does competition make business unprofitable? The failed businesses that I have seen have failed because of internal problems, not the store down the street or across town. In just one small example, if your premise was true, car dealers would locate as far from each other as possible. But they don't. They tend to cluster because the competition tends to make them stronger.

"It's why the founding fathers put things like bankruptcy codes in place, which arguably is a form of socialism, with the state canceling perfectly legal contracts."

Bankruptcy was for extreme cases. People now treat it a divine right for anyone who runs up their charge cards. Remember, if the government gave you the 'right', it is not a right, it's a privilege.

"We could kill the stupid people, as long as I get to decide who is stupid."

Sorry, I already have that job. LOL

145 posted on 01/28/2003 9:44:38 AM PST by Badray
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To: Badray
"Personal charity if admirable. Help that is extorted by government force is not. "

There are costs to not doing anything. They range from health concerns to increases in crime. When the majority of the population agrees that it is in the best interest of all to have a safety net, then we collectively have that right. And if you don't like it, your choices are to try to change it or get out.

What makes you think that you have an unalienable right to be government free? They are sticking the same gun to my head that they are sticking to yours. The system is fair.

Since when does competition make business unprofitable?

Competition does not always make businesses unprofitable. But it is common that competition will drive the profits down to zero or below in the shortterm until enough business fail and industry rationalization occurs. This is basic macroeconomics.

Free enterprise is still the best system for overall management, but you need to realize that you can do everything right and well and can still be driven into bankruptcy by circumstances beyond your control. Thomas Jefferson filed bankruptcy twice before being elected president.

It's not the competition that makes car dealers locate close to each other, it's the marketing location. The odds of having their cars seen are greater if they are close to other lots.

"Bankruptcy was for extreme cases. People now treat it a divine right "

Some people do. And I think there should be a system to track people who file every 7 years like clockwork. On the other hand, as someone who started a business a year ago, I appreciate the fact that the bankruptcy laws are there.

They have allowed me a chance to get out of the corporate slavery and take risks, that I wouldn't have, if bankruptcy laws didn't exist. Ultimately that increased risk taking is good for the economy. See Benjamin Franklin's comments on the value of low interest rates to the overall economy.

148 posted on 01/28/2003 3:08:57 PM PST by DannyTN (Note left on my door by a pack of neighborhood dogs.)
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