Monday, January 16, 2012

Flaws of the free market

There are fundamental flaws in the concept of the free market that troubles me. I will use two examples, healthcare and the import retail.

First, if you have read other post on this forum (and feel free to comment, i will not edit or block anyone from participating in conversation) then you might be familiar with my views on capitalism in general. To be succinct no body makes real money in a capitalistic system with out disenfranchising a segment of the population in the interest of harvesting regular profits from them. No where is this more apparent than in the for profit healthcare system. I understand and support the idea that new technology and new drugs come from heavy investment in research. But the insurance model as it exists is predatory. Like a thug holding your health hostage for a ransom paid on a monthly basis.

Second, no company is an island. No company could exist in a truly free market in a healthy way. Currently the American Navy maintains eleven carrier groups in various parts of the world permanently. This ensures our trade interests are protected. I my opinion this is a service we provide through our tax dollars to companies that rely on international trade. If we did not protect these interests in this way, it would not take long for modern piracy to start seizing these low hanging fruits as they travel international waters. We pay for our oil twice in this way, if you think about it. Not only do we protect them in transit at sea, but we also pay for the roads they use to distribute the goods once they arrive at our shores. We pay to keep the infrastructure that makes their business possible in a lot of ways.

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