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General Category => 3DHS => Topic started by: Christians4LessGvt on August 26, 2016, 06:15:01 PM

Title: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Christians4LessGvt on August 26, 2016, 06:15:01 PM: (http://www.financialsense.com/sites/default/files/logo.jpg)

Capitalism Works If Government Would Just Get Out of the Way!

By RICHARD LARSEN0
8/26/2016

A seemingly accelerating trend with many Americans is to look with skepticism and a jaundiced perspective in business, capitalism, and the profit motive. In spite of efforts by some to rewrite history, those of us who are students of history recognize that capitalism made America the economic superpower that it is. And the more we allow the government to interfere in our economy, the more we move toward a fascistic system where the government controls the means of production.

Business and the profit motive have turned us from an agrarian to a high-tech producing and consuming nation. All of us are dependent upon business and the profit motive for everything we do every day. From the manufacturer of the bed we arise from and the alarm clock we wake up to, to the toothpaste, shampoo, and comb we use in the morning. The beverage we imbibe to give us a kick-start in the morning and the vehicle we drive to work are products of once small businesses that have grown sometimes to global proportions. If any of those products or services we depend on get too expensive, we start shopping for cheaper alternatives. That's capitalism in a nutshell.

Most of us even work for a small business driven by the profit motive. Those firms, created and managed by entrepreneurs, market and sell products, provide advice and services and fill the needs of people from all walks of life. They pay us to fill a specific function within the company to help them service their customers more efficiently and cost-effectively. And most of them pay another 30% of our salaries or wages in the form of benefits to help retain quality employees. And according to Arthur Brooks of Syracuse University, an amazing 89 percent of us are very satisfied or somewhat satisfied with our jobs.

As a matter of fact, according to the Small Business Administration, small businesses represent 99% of all employer firms, employ half of all private sector employees, pay 45% of total U.S. private payroll, generate 80% of new jobs annually, create more than 50% of nonfarm private GDP, comprise 97% of all identified exporters, and produce 26% of the known export value to our GDP.

Yet every time new governmental regulation is imposed on businesses, the costs increase. Whenever the government increases taxes on companies, the costs increase again. In order to stay in business, they must pass those costs on to their customers, or find other ways to reduce costs like eliminating jobs. That's why it makes no sense to tax companies since we all end up individually paying their taxes via increased prices for their products and services.

And it's not just a small business that makes our quality of life what it is, but the brother of small business; BIG business. It's not an evil concept, to sell things that people want and need at prices that most people can afford, so they can sell as much or as many as possible, applying the economies of scale. And they do so with a profit motive in order to share their success with those who ponied-up the capital, (investors, silent partners, share-holders) facilitating their business ventures. Remember, if they over-price their widgets, they price themselves out of the market. If they under-price their widgets, they're not going to remain viable, and will have to lay off employees and won't be able to pay all those taxes the government is requiring of them. Then their employees will have to hope they can find another widget company to replace the job they lost.

The media, Hollywood, and even some of our fellow citizens bash "big pharma," big oil, or big retailers like Wal-Mart. But in reality what do the "big" evil companies do? They provide needed products and services at reasonable prices, and jobs, enabling our national economic engine, and our quality of life, to keep chugging along. They have limited control over much of their expenses, but to be able to continue doing what they do, they achieve a modest profit to ensure their viability in future years, and allow us to have a job.

When politicians promise "free stuff" at the expense of taxpayers, they're doing nothing more than attempting bribery, they promise free stuff for our votes. And it's not their free stuff. It's stuff they promise to use governmental coercion to forcibly take from others, in order to redistribute to those they?re bribing.

It's no wonder that Bernie Sanders, who nearly captured the Democrat nomination, (and would have if the DNC had not colluded with the Clinton campaign) garnered the support he did as the self-avowed socialist peddled collectivist promises for populist electoral support.

And Hillary Clinton is no less ideologically aligned with socialistic solutions. A disciple of Saul Alinsky, and the first architect of a socialized healthcare system for the U.S., she has made some brash statements over the years that reveal her ideological convictions. Among her, many anti-capitalist statements are these nuggets. "We're going to take things away from you on behalf of the common good," (6/29/04). "It's time for a new beginning, for an end to government of the few, by the few, and for the few and to replace it with shared responsibility for shared prosperity," (5/29/07). "(We) ... can't just let business as usual go on, and that means something has to be taken away from some people,? (6/4/07). "I certainly think the free-market has failed," (6/4/07).

The brilliant economist, Thomas Sowell, has philosophically put the failed socialist ideology into proper perspective. "I have never understood why it is "greed" to want to keep the money you've earned, but not greed to want to take somebody else's money." "Much of the social history of the Western world, over the past three decades, has been a history of replacing what worked with what sounded good." And for academics who are smitten with the failed ideology, "Socialism in general, has a record of failure so blatant that only an intellectual could ignore or evade it."

Too many of us rely on fallacious populist typecasts of what business and the profit motive do, rather than relying on our empirical observations of their contributions to our quality of life and economic viability. We allow the media, Hollywood, or anti-business kvetching to taint our perceptions with a failed, yet idyllically appealing narrative of "equality" or "social justice."

PragerU has produced an insightful clip that explains this perfectly. It can be seen below or here.

https://www.youtube.com/watch?v=w6adVQrSUAc

The profit motive, capitalism, and free enterprise, are the backbone to our economic system, and as such, are the key to future growth and prosperity, individually and collectively. Government encroachment and increased regulation stymie future potential growth, our quality of life, and our job security. It's time for Americans to quit buying (with their votes), what self-serving politicians promise for them. Less regulation, less taxation, less government spending, and less government control is the solution for future economic growth and security.

http://www.financialsense.com/contributors/richard-larsen/capitalism-works-if-government-would-just-get-out-way?utm_source=dlvr.it&utm_medium=facebook
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 26, 2016, 08:36:30 PM: Capitalism will never work if companies refuse to make their prices public.

It can never work in any emergency room.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 27, 2016, 12:13:28 AM: Im all for capitalism but it does need to be in check . Remember it was once ok to have life threatening child labor and not even parents would stop such practices. I know two coworker chopped they fingers off. Safety in business is never a easy thing
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 27, 2016, 09:56:33 AM: Capitalism without regulations creates a society in which a few monopolists dominate a huge number of servile wage slaves. Competition is the capitalist's enemy, not his friend. Regulation is required to allow competition a chance to work.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 27, 2016, 10:37:16 AM: Competition is the foundation to successful capitalism ::)
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 27, 2016, 02:49:00 PM: but sometimes capitalism by nature tries to stop competition . example the big three automakers actually has a symbiotic relationship. it`s extemely doubtful cars would of improved to it`s present level if it was for the japanese competition.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 27, 2016, 03:03:03 PM: No, not Capitalism, or even its "nature"....its greed that tries to stop competition. And that greed can be found anywhere and everywhere, including politicians who will attempt to manipulate industries, thru legisation, and remove competition from those companies, they would prefer to succeed over those businesses they would prefer to fail. The whole epi-pen debacle is a perfect example. Same with Solyndra
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 27, 2016, 08:04:24 PM: Ouch epi-pen

I looked it up . It's has a military origin but became a boon to the public for so many things. The excuse for the price jump was to make ba k the cost before a cheaper alternative will be made. I'm got serious doubts that's excusable
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Plane on August 27, 2016, 10:28:07 PM: Making the epi-pen less available is going to kill a few people.

Lets have the advertising department tell the top office what effect this will have on public good will that they spend a billion to foster.

I doubt that there is even a large increase in profit , if sales are depressed as much as per unit cost is raised.

Every now and then highly educated , highly paid and highly powered executives do dumb things.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 28, 2016, 12:01:11 AM: It is the nature of capitalism to extract the maximum profit, regardless of the cost of production or the needs of the customer.

That is a why it needs to be regulated.
In Canada, it is regulated and the company has not been allowed to maximize the price.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 28, 2016, 10:43:45 AM: I don't think it works like that. A rapid high increase does not mean profit . People will not simply take the cost no matter how important it is. They will take the most minimal amount which maybe not buying it at all. They may hold on to the expired epi-pen til they eventually for the new one. Meantime the company may lose money with other products not selling as well also since it's rep to gouge might effect its overall bottomline.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 28, 2016, 11:36:36 AM: These greedheads could probably have gotten away with doubling the price.
Whether quintupling the price and promising to lower it for a select few will be more profitable remains to be seen.
It did not benefit the company's stock for the short term.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 28, 2016, 02:49:42 PM: Quote from: Xavier_Onassis on August 28, 2016, 12:01:11 AM
It is the nature of capitalism to extract the maximum profit, regardless of the cost of production or the needs of the customer.

No, that's not its nature. SUCCESSFUL capitalism is one that allows for ongoing longevity in success. maximum profit, regardless of the cost of production or the needs of the customer, is counter-productive to such a template. It's short sighted and leads directly to failure.....unless bailed out (with tax payer dollars) by Government who's been accepting large sums of donations from those failing entities
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 28, 2016, 03:09:32 PM: The laffer curve is used for taxes but it can easily be applied here.

The profit cannot match price hike and would likely because of radical increase cause loss of potential profit. Obviously the company did not do research before making this decision.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 28, 2016, 03:14:48 PM: I don't see any Laffer curve involved, but there is a curve by which companies determine prices by seeing where profits are maximized without a drop in volume.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 28, 2016, 03:19:20 PM: And if you try to maximum profit, regardless of the cost of production or the needs of the customer, you may have a short term impressive profit margin, but you will fail as a business, as customers go elsewhere. Unless of course, you've payed off enough politicians to remove competition, or have payed enough for direct access to.....let's say....a Secretary of State, who then ok's projects that specifically benefit your business or corporate interest, at the expense of your competitors
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 28, 2016, 03:50:34 PM: In the case of newly developed drugs, the companies are guaranteed a monopoly for a number of years. Luckily for consumers, India refuses to obey this and authorizes the sale of generics very soon after their release.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 28, 2016, 04:43:02 PM: Thats the curve im talking a about. Is thier another word for it? It seems similiar to me
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 28, 2016, 04:44:58 PM: Nor does it refute anything I've referenced or Kimba has referenced
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 28, 2016, 05:54:33 PM: The Laffer curve is about tax rates and tax receipts. There is a point at which taxes aere minimized and tax receipts are maximized.

In the curve you refer to, the elements are the possible drug price and the profit from the the number of units sold. If the price is higher, the customers will not buy the medicine, and profits are less. I am pretty sure the drug company studied this before raising their prices. They could be wrong about the point at which customers show resistance and do something like buy their Epi-Pens in Canada or Mexico, which have price controls.

With the price quintupled, no sane government is going to arrest anyone from buying their Epi Pans from Canada.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Plane on August 28, 2016, 06:25:08 PM: Quote from: Xavier_Onassis on August 28, 2016, 12:01:11 AM
It is the nature of capitalism to extract the maximum profit, regardless of the cost of production or the needs of the customer.

That is a why it needs to be regulated.
In Canada, it is regulated and the company has not been allowed to maximize the price.

Maximum profit cannot be had regardless of cost.

Cost is a natural restraint that works well with experienced businessmen , but has too little effect on governments.

Consider the crime that the government of China is busy committing right now.

To capture the rights to the fishing and oil drilling in the whole China sea from the shores of Vietnam to the tiny Islands attached to the Philippines, the Chinese governments is building islands that will be the home of military bases , airfields and barracks . This is of course killing a huge number of the fish that live in these seas , Giant clams and all manner of corals already endangered are going to loose all presence in this huge sea.

I like to think that this is a peculiar sort of stupidity found only in the biggest corporations and governments.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 28, 2016, 07:05:45 PM: Precisely. ... greed both manifesting in corporations & Government. And heaven (& the Constitution) help us, when they consort with each other to inhibit, if not literally block competition
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 29, 2016, 02:34:16 AM: Drug companies likely has researched outcomes to price increases but that does not mean they would know how to use such information. We had many businesses who made for profit only decisions and are not around anymore.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 29, 2016, 01:15:41 PM: If China were not messing around in the Spratly Islands, if the Philippines had total jurisdiction to this area, I think it would be likely that the Philippines would also be almost as likely to be drilling for oil and messing up the ocean floor as China is doing. The same is true of Vietnam.

But this is not really a matter involving capitalism and monopolies.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 29, 2016, 02:09:50 PM: for the past decade asia and particularly china has gotten some blowback for it`s unrestraint capitalism. huge losses of potential revenue due to lack of safety concerns. chinese still prefer american made baby formula than locally produced. despite it`s made from the very same company so the quality is identical.
it got so bad for a few years I was not able to buy a certain cry peach snack due to lead poisoning concerns. strangely i cannot buy any U.S. made product due to the fact american made stuff simply not edible. it just cannot be made here. sometimes thing can only be made in china.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 29, 2016, 03:16:49 PM: I think anything can be made anywhere. But there is usually a reason why some stuff is always better when made in a particular place.

Lead poisoning is a good reason for not eating something.

China has a high growth rate, but investing in China is iffy because there are insufficient regulations against various types of scams.

Unregulated Capitalism is undesirable anywhere.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 30, 2016, 01:19:20 AM: Nor is anyone pushing for completely unregulated capitalism either. That's referred to as a red herring ::)
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 30, 2016, 10:22:14 AM: Look at the title of this thread. "If Government would just get out of the way" means precisely that government regulations are always a problem, and the government should "get out of the way".

If you tell someone to get out of your way, does that mean you want them to block you just a little less?

Typical sirs stupid remark.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 30, 2016, 10:27:22 AM: Getting out of the way isn't the same as being non existent. Context is everything
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Plane on August 30, 2016, 03:57:41 PM: Quote from: Xavier_Onassis on August 29, 2016, 01:15:41 PM
If China were not messing around in the Spratly Islands, if the Philippines had total jurisdiction to this area, I think it would be likely that the Philippines would also be almost as likely to be drilling for oil and messing up the ocean floor as China is doing. The same is true of Vietnam.

But this is not really a matter involving capitalism and monopolies.

Yes it is.

The government of China is run by a party that insists on monopoly , and what they are doing in these islands is the greatest environmental crime in this century (so far).

There is definitely a role for government in business, but it is not the role of boss or owner this just makes the government part of the crimes that happen.

The proper role of government in business is as referee in the game , not choosing the winners , just preventing cheating.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 30, 2016, 04:11:42 PM: Quote from: Plane on August 30, 2016, 03:57:41 PM
There is definitely a role for government in business, but it is not the role of boss or owner this just makes the government part of the crimes that happen.

The proper role of government in business is as referee in the game , not choosing the winners , just preventing cheating.

BINGO! Hardly "completely unregulated" Context means everything
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 30, 2016, 11:56:17 PM: What part of "GET OUT OF THE WAY do you not understand?
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 31, 2016, 12:11:29 AM: You can get out of the way, by not making regulations so ridiculous, as well as trying to pick winners and losers, as to be literally in the way, and still have an integral function in policing, as Government is designed to do

Context means everything. What part of context, do you not understand??
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 31, 2016, 03:56:21 PM: I remember the beef industry trying to say the tumors in meat are harmless to eat. Say FDA was excessive i its regulations. Of course it backfired because who the hell wants to eat tumors.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Christians4LessGvt on August 31, 2016, 04:10:40 PM: Quote from: kimba1 on August 31, 2016, 03:56:21 PM
I remember the beef industry trying to say the tumors in meat are harmless to eat. Say FDA was excessive i its regulations. Of course it backfired because who the hell wants to eat tumors.

And I remember the FDA not approving marijuana and cannabis oil to help people with cancer....
oh wait a minute they still don't!
::) ::) ::) ::) ::) ::) ::)
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: sirs on August 31, 2016, 04:13:10 PM: ....not to mention, that the Government policing the beef industry is an appropriate function.
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: kimba1 on August 31, 2016, 04:23:10 PM: I really dont have a real problem with the cannabis situation due to the fact it got way too much support to believe all the fantasy claims behind it. It should be regulated like alcohol

I remember the 80's in america and food was more like roulette. I remember eating place with the most foul stench but people still go there. We actually used to accept these conditions.
Its super crazy easy to ignore basic food safety rules in the food industry. Example peanut butter 2009 people actually died
Title: Re: Capitalism Works If Government Would Just Get Out of the Way!
Post by: Xavier_Onassis on August 31, 2016, 04:30:55 PM: Mmmmmm! Filet de tumor. Tumor au jus. Fricasseed tumor. Yum.
The meat in Taco Bell tacos is rather suspect. Perhaps it is made from tumors. Or hamburger meat. How can you tell ground muscle from ground tumor?

Mc Nuggets are made from "mechanically separated meat". Mmmmm.