> ajames54 wrote:

>> In my opinion is the stupid thing was all the morons defending the
>> current system as though laissez-faire was what we had. To call what
>> we have a free market is to indulge in Orwellian double speak of the
>> first order.

>
> It actually is. A common misconception it is that a free market can actually
> exist and can actually work. Nothing more wrong. Any business/financial
> system let loose it is going to crash. The reason is because the size does
> mater and because of that, free market it is it own Nemesis.
>
> If a sole proprietor wants to start a computer assembly business, he will
> buy a harddrive for $65. Dell, buying directly from manufacturer, in bulk
> of a million will be able to buy the same harddrive for $25 or less.
>
> Just try to do the following experiment. Look at Walmart for a computer, get
> the list of hardware and software then shop on the internet for the parts.
> You will be surprised to find out that even if you price your work at 0
> (better productivity that a 0 wage can not be achieved) the WalMart
> computer it is still going to be cheaper.
>
> As a result, once a large company have a certain size that company will
> stifle competition, destroying innovation and forcing the competition to
> merge to stay alive. As a result, a free-market will become dominated by a
> few number of large players. Once this happen, they stop really competing
> among them and set up a natural oligopoly. Then, they make the rules and
> control the market worst than any government will ever do.
>
> The economic naive can say: "But they make them cheaper by mass negotiation,
> so the consumer win". The naive claiming something like that do not grasp a
> basic economic fact: The consumers are actually the workers.
>
> Yes, by mass negotiation they bring the prices down, but in order to do so
> they push the supplier to cut costs. By this they have to bring salaries
> down or even close the US factory and move it to Asia. The pressure to
> negotiate lower prices also push toward: lower wages, unemployment, and
> lower or no benefits. The consumer who buy now a 500$ computer for $400 is
> the same guy who lost his 60k job + pension and full health coverage for a
> 35k job with no benefits. An 20%% drop in prices is payed with a 50%% drop in
> wages and benefits.
>
> In the end, the in debt and squash consumer will stop spending then the
> economy collapse. This is how unregulated free-market really works.
>
> --
> The world of the future will be fully democratic or will not be at all.
>
> Democracy Highlander
>
> P.S.:
> When I say "democratic", I use the word democratic coming from democracy not
> from Democratic party. I am not connected in any way with Democratic party
> and if they fail to do as promised and cut corporate corruption I have no
> problem to turn on them and blog against them too.