A short about the market
By: a guest | Mar 21st, 2010 | Syntax:
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Let's presume that in our experimental economy of the nation of Waxtopia there exists 3 major candle makers: A, B, and C. Along with these candle makers are several prospective members of society who want to start a candle company as well. Candle makers A, B, and C lobby the government to create a licensing system for candle making because "candle making is unregulated and dangerous and should only be done by those licensed to make them." The congress of Waxtopia passes a law to create a licensing system for candle making. A, B, and C quickly obtain licenses because they have the money to purchase the license. As for prospective business owners, this is now an additional cost to pay to start their business. Soon enough, A, B, and C lobby the government again to allow a private company to take over the licensing of candle makers in the name of efficiency and the "free market" (which in reality would have no such system to begin with). Prospective candle makers now have to deal with another block before being able to get their business afloat. What is the point of all this?
No bill going through congress today regarding any change in business regulation is ever ignored by the lobbyists of the respective corporations. What I mean to imply by this line of thought is that business and the "free market" in the US is no such thing. The US system is a very corporatist one and has nearly nothing to do with any sort of capitalism, free marketing, or free trade. It's mercantilism at it's finest. The problem with our economy is not that corporations are taking advantage of workers directly but that they are destroying any semblance of competition the market once had. The interaction between governments and corporations is what should be regulated, not the corporations or businesses themselves.