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

HAHAHA! I'd love to hear Bleeding's comment over China. Well done, I often tut but you managed to hit home here!

 

Capitalism is the ONLY system that does not impose upon free will, and that is why all other systems are immoral. But I guess you're right in the sense that you can not assign morality to an economic system, only people. But people act immorally by default in any other system, so I guess that would be stating my point more precisely.

 

So economists are basically unable to determine conditions which will result in economic meltdown ?? Then what is economics good for ?? It's not God like to be able to determine that reducing lending standards to meet 50% of Fannie and Freddie mortgages has enormous economic risk. It's not God like to be able for economists to determine that banking regulations which assume that mortgage backed securities (loaded with these loans) are practically risk free based on the Basel reserve requirements could annihilate the financial sector. Housing bubble are analyzed ?? Where was the warning by the consensus of economists that that a financial crisis would result if the loan requirements were not set at 20% down payment. Again what is economics good for except for an academic exercise in forecasting the past ??

 

Comparative advantage refers to the lowest production and distribution costs resulting in the lowest prices. There is no restriction to "specialization across industries." Again how has New Trade Theory benefited anyone except for those who make a living in academia ??

 

Nonsense. There are all sorts of free markets, and, there are various levels of freedom in the marketplaces.

And, so what. Does that change my argument?

 

Ie. it is neither right nor wrong.

"Allowed". Allowed by whom?

Freedom to exchange is a social program? To the extent that government is involved, it's immoral.

 

In matters of morality, I like precision. It pisses off the moralists.

 

And consumers are the "most informed" of any time in history. Also in every transaction benefit is derived by each participant regardless of the terms.

 

sure, freedom to exchange or capitalism is a social program generally speaking in that it is best way to provide for welfare of all citizens.

 

capitalism is allowed or encouraged by society and the govt that represents that society

 

economics is good for understand the Great Depression and preventing it from happening again, for example. A depression is a very bad thing.

 

?? What?? moral behavior is behavior consistent with human nature. Murder is not moral because human nature requires us to want to live. Capitalism is moral because it allows or encourages us to trade freely to sustain our lives which is very consistent with human nature.

 

Agreed but monetary policy which was a major contributor to the GD was also a major contributor to the housing bubble. Economists did not raise a red flag about the easy money and absolutely no economists realized the black swan residing in the banking regulations with respect to mortgage backed securities consisting of a large percentage of "no money down" and financially unqualified (by previous standards) mortgages. The Basel rules were based on an assumption that a large down payment (20%) and very strict qualifications were required to obtain a mortgage.

My impression is that economists analyze after the disaster has happened. But their track record for preventing financial disasters is abysmal.

 

there have been no disasters since Great Depression because Friedman found the key that Bernanke used.

 

It's kind of interesting that many of us are excited about gambling in the economic arena, and we love huge ROI, but as soon as the stuff hits the fan we scream to government demanding to make everything okay again. We want/demand the gains and cry like a baby when there are losses. A depression or recession 'is a very bad thing' for us because we've never grown up...been spoiled...and cannot fathom the responsibility of dealing with severe losses and rebuilding. We demand instant gratification!

 

Can you name a few?

 

The housing bubble was caused in part by Greenspan's decision to hold interest rates to very low and unjustified levels. The financial crisis occurred after the housing bubble imploded.

 

If Medicare is so bad why is banned by the government?
Is it banned because it is not safe for people younger then 65 years old?

"Let me tell you something ..." (c)
The only reason it is banned is to preserve monopoly of medical cartel to defend it from competition.

 

Medicare is not banned. Certain medical facilities do not accept Medicare patients because the reimbursement rates are too low.

 

Who is "providing" that?

 

And what gives anyone the right to the power to "allow" or not "allow" individuals to order their economic affairs?

 

Taxpayers

 

The Constitution

 

More so tax consumers.

 

Primarily the 16th and 17th amendments to the Constitution.