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Reviews:
 ·ViaTalk
| reply to Xioden
Re: 9; Sure; let's spend more money we don't have and incur even more indebtedness. Brilliant economic strategy.
If a business model has merit, the private sector will build it at its own expense, because money can be made off of it. When government interferes in the free market, the economic Darwinism of the free market falls by the wayside, and you end up with Solyndra, Fisker, etc. -- companies that used the artificial crutch of taxpayer funds to avoid developing viable business models, because they were artificially insulated from having to survive on merit and true competition and innovation.
Crony capitalism via handouts of taxpayer money to favored and well-connected campaign contributor businessmen is poor policy and even poorer economics. | |
CXM_SplicerLooking at the bigger picturePremium
join:2011-08-11
NYC
kudos:1 Reviews:
 ·Verizon FiOS
| said by alancats:If a business model has merit, the private sector will build it at its own expense, because money can be made off of it. When government interferes in the free market, the economic Darwinism of the free market falls by the wayside, and you end up with Solyndra, Fisker, etc. -- companies that used the artificial crutch of taxpayer funds to avoid developing viable business models, because they were artificially insulated from having to survive on merit and true competition and innovation.
Sorry but this is an oversimplified and unrealistic view. The Free Market is only an economic model for examining limited interaction... it is not reality. The fact is that business itself rejects the Free Market and moves the system further away from it whenever possible.
Your belief that the private sector will pursue a business model with merit is usually not true. Any large incumbent business that views smaller business as a competitive threat will actively try to destroy them though bankrupting legal actions, lobbying for discriminatory legislation, anti-competitive price fixing schemes, etc. Government is absolutely justified in stepping in where business deliberately screws things up.
And, in case you missed it, Xioden suggested diverting money from the defense budget (money we don't have that we are already spending) NOT to spend additional money as you suggested. I wholeheartedly agree with this... infrastructure improvements would be far better for the country than wasting money to protect us from... (whom exactly?) Because as you correctly point out 'handouts of taxpayer money to favored and well-connected campaign contributor businessmen is poor policy and even poorer economics'. | |
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