Why can't capitalism stop its excesses, greed, and other damaging characteristics?

Discussion in 'Economics & Trade' started by Kode, Sep 30, 2017.

  1. Reiver

    Reiver Well-Known Member

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    New Trade Theory is, by definition, applied economics. Keep up!

    The irony is that he's supported free market policies (indeed, new trade theory derives a 'non-harm' result from free trade that the likes of Heckscher-Ohlin doesn't). You're not clued up are you?
     
  2. kreo

    kreo Well-Known Member

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    But they never blame the government, and that is a main problem.
    The government (the lobbyists) created the system where all decisions about Health care are made by private cartel, not by market forces. It is a government that create artificial deficit of the medical resources, that jack up the prices and make health care inaccessible. U.S. is loosing a trillion dollars every year just to make medical cartel richer and richer.
     
  3. AFM

    AFM Well-Known Member Past Donor

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    Those are not monopolies. They all have competitors. Lobbyists represent the interests of industry and social groups. They destroy nothing. Crime does however destroy wealth.
     
  4. AFM

    AFM Well-Known Member Past Donor

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    Of course they blame the gov for mandating coverages which are not necessary and not allowing a national free market for health insurance.
     
  5. kreo

    kreo Well-Known Member

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    If you have only one owner of all cables in the city it is monopoly. The problem that people do not understand that.
     
  6. Reiver

    Reiver Well-Known Member

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    You do know what monopoly power means don't you? I have to ask....
     
  7. AFM

    AFM Well-Known Member Past Donor

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    Of what use is it ?? What are the benefits ?? What has this New Trade Theory produced to increase the standard of living of human beings ??
     
  8. kreo

    kreo Well-Known Member

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    Right, instead of demanding government to lift a ban on government insurance (medicare) they continue to blame it for totally irrelevant issues.
     
  9. AFM

    AFM Well-Known Member Past Donor

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    Ah, the academic seeks to inform - please continue.
     
  10. Reiver

    Reiver Well-Known Member

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    This continues to make me smile. Krugman has effectively significantly supported the economics behind globalisation and free trade. Are you anti-trade all of a sudden?
     
  11. Reiver

    Reiver Well-Known Member

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    I'm laughing at how little you know. Sorry!
     
  12. AFM

    AFM Well-Known Member Past Donor

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    I have no idea what ^^ this means. Medicare is a terrible way to deliver health insurance and care. Why do not all health care providers take Medicare patients ??
     
  13. AFM

    AFM Well-Known Member Past Donor

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    You have not been able to quantify the benefits of anything thus far. But that's what academics do. As Christine Romer did - they retreat into the ivory towers where partial differential equations behave themselves.
     
  14. Reiver

    Reiver Well-Known Member

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    No, you haven't understood the economics mentioned. That you don't appreciate the importance of new trade theory describes your ignorance of basic economics.
     
  15. AFM

    AFM Well-Known Member Past Donor

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    Ricardo (comparative advantage) showed that 200 years ago.
     
  16. AFM

    AFM Well-Known Member Past Donor

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    Again nothing which quantifies benefits except an attempt to justify an academic exercise which leads no where. What good is academics if it is not able to prevent economic tragedies like the housing bubble and financial crisis ??
     
  17. Reiver

    Reiver Well-Known Member

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    Chortle chortle, Ricardian comparative advantage refers to inter-industry trade. New Trade Theory answers intra-industry trade. The latter is particularly important as it understands trade patterns and also provides an understanding of how trade doesn't have to benefit one factor of production at another's expense.
     
  18. AFM

    AFM Well-Known Member Past Donor

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    It absolutely does not. International comparative advantage is why clothes are manufactured in China and Bangladesh. Trade policy is a political endeavor. So again what is the benefit to the US of this New Trade Theory again ?? Here's a chance to show the power of this academic theory.
     
  19. Reiver

    Reiver Well-Known Member

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    You want economics to be god like? I find that funny, particularly as you support right wing ideas that are completely inconsistent with economic reality. Keynes introduces economic psychology within macro thought. That has been built on since. Housing bubbles are analysed. And crisis theory is a natural part of heterodox economics.
     
  20. Reiver

    Reiver Well-Known Member

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    Again, you only tell me your ignorance. Comparative advantage refers to specialisation across industries. It couldn't explain, for example, trade across countries in the same industry. It also couldn't understand the impact of aspects like economies of scale and trade skewed towards countries with similar income. New Trade Theory filled the gap, providing an analysis of intra-industry trade. You whine about Krugman but you have no understanding of his economic analysis.
     
  21. TedintheShed

    TedintheShed Banned

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    I understand this, but what I was referring to was the double standard that the hypocritical New Socialist use when comparing the two economic systems.

    But you are right of courses- capitalism is the only moral system of economies.
     
  22. Reiver

    Reiver Well-Known Member

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    Based on what?
     
  23. BleedingHeadKen

    BleedingHeadKen Well-Known Member Past Donor

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    I disagree with that. It's like saying that being an omnivore is the only moral system of eating. One can be a vegan, or vegetarian, or follow some other set of rules, and consider that even as the most moral diet ("meat is murder"). It's when one attempts to force those moral preferences onto everyone else that immorality must result. Violence must be used against those who disagree but have harmed no one.

    I'd say that capitalism, or, more specifically, a free market, is amoral. It simply is people doing what they will do peacefully and without undue intervention. Each person is free to organize his or her economic matters as he or she chooses. Where there may be a point of contention, and certainly meriting discussion, is the acquisition of property.
     
  24. Reiver

    Reiver Well-Known Member

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    There's no such thing as a free market. You're essentially saying a hypothetical result is amoral.
     
  25. james M

    james M Banned

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    amoral? you mean very very moral in that people are allowed by it to sustain their lives at ever higher levels in peaceful voluntary relationships? China just eliminated 40% of the entire planet's poverty with free markets? Is that amoral or the greatest social program by far
    ever conceived?
     

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