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"Greed is Good"
Fareed Zakaria, writing in Newsweek: "The Capitalist Manifesto: Greed is Good" makes the case that "[Capitalism] is the worst of all economic systems, except for the others." Interesting read from an interesting guy. (Wikipedia has a bio.)
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The problem with these arguments is that they're based on a false premise:
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When we insist that Government should stay out of things completely what we get is Corporations manipulating Government to set the rules to their liking. That immediately destroys Capitalism and leaves us with something that only looks like it if you don't look too closely. Our problem is that nobody in power looked closely over the last eight years. Edit: I don't want to imply that I disagree with much of what he's saying. It's just that the idea that what's going on now is a move away from Capitalism is disingenuous, politically motivated, and too many people are falling for it. |
I agree with much of what he says, and with your take on it as well, CWT, although at the same time, I'd argue that for some utilities, for example, nationalization (at the federal or state level) makes sense. If an electric utility has a monopoly on local power and is a non-governmental corporation, then their goal is to pay a dividend to their stockholders, not to serve their customers who have no choice.
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I agree that nationalizing some utilities might be necessary until we get more solar/wind power in use, but even that isn't really a move away from Capitalism. It's merely a recognition of Capitalism's limits. Unfortunately, we have a loud minority that will try to use it politically by calling it Socialism.
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I think it comes down to: less government influence leads to more freedom and, over time, greater choice. That choice may take longer to come about than a legislated all inclusive government program, but it will come with greater innovation, flexibility, and a more efficient process overall. |
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Next, if Government is involved in anything (as it must be) then individuals will attempt to control Government. So far, that's fine, since a democracy is essentially free market governing. The problem is that Corporations have far more power to influence government, which is why we need to use our anti trust laws. |
not to but a bee in anyone's bonnet, but part of the problem here is that people talk about capitalism as though it actually existed somewhere. It doesn't. Capitalism in its proper sense refers to free-market mercantilism (ala Adam Smith), which is actually a sustainable (if low-yield) socio-economic system. what we have in the western world (largely, and with variations) is a form of corporativism or corporate socialism. corporativism differs from feudalism in a number of ways - leadership is diffuse, rather than inhering in a particular feudal lord; fiefdoms are built around abstract resources rather than concrete territory; control over people is exercised via wage and debt rather than through military means - but it's closer to feudalism than to actual capitalism.
whenever you hear someone extolling the virtues of democracy and capitalism in your nation, you can be damned sure they're putting as much effort into convincing themselves as they are into convincing you. |
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I like what you say about corporativism and feudalism, though. Now feudalism is a topic I know something about, and I've written a lot about this linkage myself. When I've edited it, it will go up on the blog (below). |
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Marx's early work was actually a critique of capitalism, not a rejection of it, and he wasn't actually complaining about what Smith would have called capitalism. the problem (and you'll excuse me for interpreting and interpolating generously here) revolves around this 'risk-intensive' moment. in a free market, risk is bourn by the individual merchant-producers and their investors; a failed venture hurts these individuals, but leaves the community as a whole untouched (it will hardly notice the absence of a product it showed no inclination to purchase in the first place). even workers are relatively unscathed - they may lose their jobs, but they received their pay, and the economy as a whole is sound so they'll get new jobs. however, the problem with Marx's 'capitalist class' is precisely that they split the community into classes and shift risk off onto the other classes. a capitalist of this sort can take risks without worrying about or feeling the consequences of failure, and ultimately the cost of failure is absorbed by the community at large (errr... do I need to give anyone examples?). it's class-based society itself that's anti-capitalistic, because classes destroy the holistic community structure that's required to keep a capitalist system healthy. not your normal way of looking at capitalism, I know... |
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I agree with tw's assessment. It seems obvious to me that the only way to go from corporativism to something closer to Capitalism is to break up the offending corporations. Banks and insurance companies that are too large to fail, large energy companies, and Microsoft all seem like good places to start. |
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I don't know that there's anything that requires government to be the issuer or controller of money. There are several private currencies in existence. All that's really required is that both parties agree on the value of the currency. With a currency backed by a physical quantity (ie. gold or some other "precious" commodity) it's relatively easy to agree on this value. When you get into fiat currency you're relying on the word of the issuing agency and it's a lot easier for a government to back up that word than a company. |
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Well, my point was that it might be a battle to keep government in it's role, but that's the same issue we have now, just a different baseline. I just don't agree that because it's a battle the solution is to let it run.
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you know, I have to say I get annoyed by people who use terms like capitalism as mere rhetoric. breaking up corporations is no more anti-capitalistic than breaking up political cabals and factions is anti-democratic. Capitalism is an economic system that functions according to certain principles; corporations can work with that system or they can work against it, just like people can work with it or against it. the word 'capitalism' should not be used as a mindless euphemism for "the great system we have in this country that nobody ought to question", because that's not what capitalism is, that's not what we have in this country, and it's just a stupid way to approach the topic. next time understand the context and think through the principles before you decide to toss this kind of meaningless snark into the conversation. </p> |
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* It's worth noting that the primary reason Capitalism (using the term loosely) is the best system available is that no humans, be they government officials or corporate executives can grasp the complexities of the market and respond appropriately in real time. It isn't simply a bad idea to have a government run the economy: corporations will do just as poor a job. The only difference is who gets rich and powerful while the rest of us starve. |
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I think you make a good case for Smith and Marx being variants on a theme, and unloading the risk is an alternative take on Marx' alienation of labour, but I'm still not happy with the use of "capitalism" to denote what Smith had in mind. I don't believe he used the word himself, wasn't it Marx himself who invented it out of thin air? I think the bottom line of this is the labour theory of value contra the theory of shareholder value. If thee and me and CWT find a natural resource and work our butts off to process it, does the profit accrue to us, or solely to Aehurst (say) who has the right piece of paper saying he owns the fruit of our labour? We have "capitalism" the moment Aehurst pays us a fixed wage, which he naturally minimises, rather than a share in the profits, which all four of us wish to maximise. Incidentally, this fixed-wage business was far from universal before the nineteenth century; much of humanity has been run on profit-sharing. Example: whaling, which operated on "lays" or percentages of the profit, bigger lays for the captain than the cabin-boy, admittedly, but still a cooperative model. (I think privateering and piracy operated the same way, ergo hurrah for the democratic pirate rebellion against early exploitation.) It follows that the Maslow-type corporation that pays in shares and bonuses to all, not just the head honcho, and generally makes nice to its workers, is not a capitalist player at all -- more, as you said, like a benevolent feudal lord, or else a tribe or clan. BTW, did you know that Spain's second-biggest industrial company is actually a worker cooperative? |
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It's no wonder that by really having the power to create money out of nothing, these privately owned corporations are the biggest holders of U.S. Government debt. The Federal Reserve system of banks and other US intragovernmental holdings account for a stunning $4.806 trillion in US Treasury debt. And after recent announcements from the Fed, potentially another $1 trillion may be added to its balance sheet. I wish the Government could create money by itself without having to get in debt with private Banks, just as Lincoln created the Greenback currency during the civil war, which was issued directly into circulation by the Treasury department and without bearing any interest and was very well accepted by the population. But incredible powerful bankers (the owners of the Federal Reserve System) which are by far in a much higher league, much bigger and more powerful than the federal Government, will never allow this to happen. |
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I mean, maybe it's just me, but I always tend to see this issue in sociological terms. where there's a (paternalistic/authoritarian/whatever) relationship between workers and owners (even when the owners are abstract objects like your Maslow-type corporation), you're going to have a failure of the market system, for the simple reason that no one discusses things with draft animals. it doesn't matter what workers in an authoritarian environment want; workers who do what the corporation wants get fed, and those who don't get fired and replaced. we should just feel lucky that there's a moral proscription against sending undesirable workers off to the glue factory (ala Animal Farm). market systems require a level playing field, or they just don't work, and you can't have a level playing field where one segment of the population views another section as a mere 'labor resource' to be exploited. |
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Your grocery is surely an intermediate thing between the whaling lay and the alienated wage, in that you don't have a boss who wants to pay you less so that he may appropriate a larger slice of the communally-baked pie. Quote:
It might be worth reflecting that for most of the time since the agricultural revolution, the primary mode of production has been slavery. Marx would no doubt say that this has generated its own superstructure, namely a perception of those who do the actual work as lesser beings, that is still very much with us. (I am reminded of Mrs. Thatcher during a strike, when she complained that the workers were there to serve the public. That pesky servant problem again! The workers probably imagined that they were "there" to have a life, by exchanging their labour for a decent wage.) Since the full-bore slave economy, complete with glue factories, was resurrected within the lifetime of some posters, there is clearly no ratchet operating -- progress must be defended. |
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The other item that baffles me is how it seems that everyone seems to treat the idea of giving more freedom to companies as allowing them to write law. It isn't. All it means is that the government can't favor one company over another. In order for a company to "own" you, you'd have to allow them to. You'd have to make the conscious decision to hand over your money for whatever product or service they provide. If they steal your money or go under (which happens now anyway), you'd have the same recourse to go after them that you do now. But you wouldn't have the government giving them more of your money to survive. If you're concerned about companies having too much power, how do you feel about a government having the aggregate power of all those companies. |
That's quite a leap of logic you've made there! So how do you think it came to be that the government decided to step in? You think that the government is sitting around waiting for the chance to interfere? The government got involved for the same reason it always gets involved: it was lobbied by business to do so! This is why it does mean that giving corporations more freedom (they already have more than you or I) means that they will write laws to benefit themselves. That's the only extra freedom they can be granted!
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Like the DMCA
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The current system has no such restriction and leads to things such as the DMCA, as was pointed out. There are plenty of freedoms that are restricted in the name of regulating business that don't come anywhere near "writing law". Which "leap of logic" in particular were you referring to? |
You can't be that naive. First, Big Business does write laws, and they want to write more. Second, the only way to reduce the power of government is to give some of its power to somebody else. It won't go to you or me, It will go to Big Business, especially if you prohibit Congress from making laws that affect business. By definition, that would mean that Congress couldn't make laws that affected business in a way that business deemed harmful to its interests. That means that laws like requiring seat belts would never have been passed, but laws like DMCA would not only pass, but be more draconian.
Your leap is the belief that somehow Big Business, which often pays lower tax rates than their own employees, is somehow constrained in a way that is detrimental to business. What exactly would you grant to business that would make things better? |
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For an example of detrimental constraints, take the Microsoft and IE anti-competitive monopoly situation. Do you think that the ability of IE to be removed from Windows has had any impact on browser innovation? Of course Microsoft wants to control which browser you use. And it was in their best interest to offer incentives to OEMs which went Microsoft exclusive. This is bad for consumers as it does limit choice. But since when is it a consumer right to be entitled to OS choice? I think Microsoft should have packed it in with that decision. Microsoft felt they could still make money by bowing down to government intervention. How quickly did OEMs start offering other OSs? Has the decision had any impact on OS growth? Apple doesn't license to OEMs and *nix systems can hardly be considered to have a "foothold" in the market. Over time Microsoft has made itself ever more irrelevant, government intervention hasn't changed that. Innovation is far more effective than the government can be in regulating the market. You said yourself (cwtnospam) that government can't run the economy. Why should they be involved in corporations? |
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*** I note that you have yet to describe in what way you feel corporations are unfairly restricted. I really would like to see that! |
Oh, and you missed the point before:
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I'll also point out that I don't make a distinction between big and small businesses. I don't think there's some magic delimiter where a business can be treated differently. The same laws should apply to any size of business. Quote:
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For another, consider that it is illegal to compete with the USPS, a public company with an imposed monopoly. Yes, there is FedEx, UPS, etc., but it is illegal to use those carriers for "non-urgent" letters and other services. It's a small distinction and hard to enforce, but it's still a restriction on competing carriers. For companies sending out bulk mail, this could be a great expense. Quote:
And using that power to their own benefit? Like providing better services and products with which to make more money? In the long run, exploiting the consumer is not an effective business plan. Look at the RIAA. |
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http://etext.virginia.edu/jefferson/...s/jeff1650.htm The intent was clearly to protect government from religion, just as much to protect religion from government. That there are unconstitutional, religiously motivated laws does not change this. Quote:
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Where's the incentive for responsible actions if failure is rewarded with a tax payer bailout? Quote:
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Is it just a disagreement on how to rein in this influence? |
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Here's your government example: WWII. Lots of government spending on heavy machinery (tanks, planes, boats, munitions, etc.) pulled us out of the Depression, which was created by lack of regulation of large financial firms! Edit: Oh, I know there's some Rush Limbaugh inspired revisionist history about WWII and government spending, but that's been thoroughly debunked. Please don't bring that up. |
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I think things like the DMCA and the bank and auto bailouts demonstrate the power of government. DHS, TSA, "enemy combatant", etc. are others. It does come down to how much power you think government should have and your interpretation what that entails. Quote:
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That's not being fair, it's missing the point! The problem isn't that later research revealed harm. The problem, and the unforgivable evil here is the resistance to making the necessary changes long after the harm was known. They did/do things like funding counter research to use as propaganda even when they know that the problem was real. It was/is always done for the sake of short term profit alone, and almost always at taxpayer expense, and usually at great physical harm to citizens! This isn't just about old issues. They're just the recognizable examples. These same types of things are happening right now, and not just in the US. All you have to do is pay attention to the news and you'll see plenty of them. Sixty minutes did a story a few weeks ago about Chevron's oil pits that they left to pollute drinking water in Nicaragua over the last 15 years. Quote:
So you think that the government getting into something it doesn't want to have to deal with is an example of its power? If it had real power, it wouldn't have to bail them out! This is more an exercise in corporate power than anything else. They're showing the world that no matter what they do, they can't be touched. In the end, the CEOs win. Not the government, and certainly not people who work for a living. Quote:
We need to stop making public policy based on what international (foreign in every country) corporations want, and make it based on our best interests. |
Since we're talking about greed, here's a little something for those of you who think you've got good health insurance:
http://www.motherjones.com/kevin-dru...hemselves-foot |
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If it can be proven that the companies knowingly provided dangerous products, it should be a pretty straightforward case in holding them accountable. Regardless, once something has been shown to be dangerous, why would someone keep using it? Surely the offending companies weren't going around forcing people to paint their houses with lead paint? At what point is it up to the consumer to question the study results that are coming from the corporation? Quote:
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Corporate involvement with the government is exactly the problem. Removing government power over corporations also removes power that the corporations can yield against the government. The companies "can't be touched" because the government is bailing them out. Quote:
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Let me try to clarify my position. Government influence over corporations is bad because it allows corporations to wield power over government. We would be far better off if corporations had no avenue for affecting government. The only effective way to bring this about is by limiting the power that government has over corporations. If government can't regulate corporate operations, corporations won't be able to influence those regulations. Trying to set up a system wherein government controls corporate operations, but corporations don't get a say in those controls simply won't work. You'll still end up with lobbying to alter the rules. Corporations must be given the freedom to fail; be accountable for their actions. Your posts include railing against "Big Business" as well as noting that much of their crimes have been funded by tax dollars. Pretend you're the dictator of this imaginary country. Are you for more government control? Smaller businesses? How big can a business get? Who decides whether a business should be split up, and which businesses get a pass? How do you keep businesses from influencing those decisions. How can a government rule over businesses without being corrupted by those same companies? Are you happy with the system as it exists today? What changes would you make? And the actions and policies taken by those health execs are despicable. I don't see how this isn't useful evidence in proving wrongful breach of contract, etc. They, along with any other company acting in such a manner, should be held accountable. |
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2. No, they should be breaking up many of these companies. 3. There are laws against them. They're called anti trust, but see number 1. 4. Yes, the free market is a farce. We can only get close to a free market by reducing the size of Big Business because Big Business is a collection of people organized to collude, and while collusion is fine on the production side it is deadly to a free market. Quote:
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Of course, now Big Business is trying to make stonewalling cheaper by claiming that government regulation is too costly for business. I'm sure they appreciate your help. Quote:
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If you don't accept the idea of a free market, or that limited government would limit power over corporations, then of course it wouldn't work. Debating the reality of a free market is also something that I don't even know how to approach debating. |
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Second, shifting power to "all" is perfect for corporate criminals. You've passed a law against child labor in your state? No problem, they'll set up shop in another state and still do business in yours. You're essentially asking to take the world wide problem of corporations finding and abusing places with lax laws and bring it to the US. We already have corporations paying people in places like China and India far less than minimum wage. The people who make Nike/Adidas sneakers can't even afford to buy a pair! Why do you want to bring that here? Quote:
You're basically thinking of the economies of the world as if they're weather systems that humans can't control. They're not. Everything that happens in them is a direct response to human action, so humans can manipulate them with or without government. |
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Why does it even matter if the workers can buy the products they make? I'm sure there are plenty of workers in the US that can't afford to buy the products they produce while making a perfectly decent living. Quote:
http://www.thefreedictionary.com/free+market http://en.wikipedia.org/wiki/Free_market I now see that what you've been talking about is a market wherein all private interests are forced to be equal, or at least prevented from becoming too unbalanced. THAT's not a free market at all. In a free market the government is simply not involved. Whether this would result in mass corporate collusion and conspiracy against consumers or enhanced competition and improved consumer conditions is debatable and impossible to prove either way (it's never existed; the US is a mixed market with government intervention). I think it would end up the latter. Quote:
Electric vehicle research has also been going on far longer than Pickens has been involved. In fact he's more interested in Natural Gas than electric cars. His most recent endeavor was the failed California Prop 10 which would have sent tax dollars to his own company. If the government couldn't fund private corporations, they'd have to find their own funding solely from investors and consumers and produce results or die off to be replaced by those that can succeed. Quote:
I don't even have the faintest idea what you're getting at with that last bit. If people manipulate markets with or without government, why is government even involved? You've said that governments and companies can't understand or control markets. That markets will be manipulated with or without government intervention. That governments need to control companies because their only goal is to, essentially, gain profit and harm consumers. They apparently aren't helping any if manipulation is going to occur regardless. Why not get out of the way and stop wasting tax payer dollars on a useless endeavor? Again, my main argument is that companies can only have power over government if government is allowed to make legislation regarding companies. Remove that ability and companies will have no reason to lobby government; no laws that could be favorable to them would be allowed. Beyond that I believe that a genuine free market is ultimately better for the consumer than a mixed market. Any government control is bound to be biased towards some group or another and, as you've said, can't possibly effectively control the market. |
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How can you possibly have "too many rights"? Name one that goes too far. Keep in mind that your rights, and those of a company, end when they infringe on the rights of others, without their permission. And vice-versa. Bottom line, I'm arguing for a free market. Quote:
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But, let's bring this back to the original issue. Way back at the beginning of the thread, you said: Quote:
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Right to murder (This is essentially what large scale polluters have done for decades. Murder for profit is still murder, even if it's indiscriminate.) Right to not pay taxes. Quote:
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As for Microsoft: Quote:
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With no government interference, or even the threat of it, Microsoft could have continued to force OEMs to pay per computer sold, making it prohibitively expensive to put Linux on any of their systems. There would be far fewer Linux systems today and IE would have an even higher market share. Manufacturers lose and consumers lose. Microsoft wins. One large Lord, lots of serfs. Welcome to Feudalism. |
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I would make a case that there is no great distinction between "feudalism" and other alleged forms of society, inasmuch as all human life is organised around the patron-client nexus, which attracts different labels in different periods. The devil is in the details: given that Tom and Dick are always in some kind of relationship of personal dependence on Harry, what is of interest to Tom and Dick are the precise terms of that dependence: where he is on a spectrum involving slavery (of which there have been innumerable varieties, some more unpleasant than others), serfdom (ditto), modern employment (ditto again), plus all the various forms of clientage and retinue membership (the Romans would have understood Boss Tweed and Mayor Daley very well). I think it indubitable that the trend of the last twenty years has been a deterioration in the terms of Tom's and Dick's service to Harry. In addition, we have seen elements of classic feudalism, which may be summarised as the "privatisation and outsourcing of government services", so that public law is replaced by a web of private-law contracts. The proliferation of "security contractors", for instance, is a red flag to anyone who knows his history. One might usefully ask to whom Blackwater owes loyalty and for whom they would fight in the event of civil disorder. I have also been expecting the return of the good old tax-farmer: you know, where instead of collecting its taxes from Tom and Dick, the government outsources the collection to Harry, in such a way that Harry contracts for a certain sum in taxes, and is then free to squeeze Tom and Dick until the pips squeak, pocketing the difference. It's only the next logical step in neoliberalism. :( |
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And to not pay taxes? Who has that right? I'd like to meet them and subscribe to their newsletter. What does that even mean? The only groups that I can think of that are exempt from taxation are non-profits. Ya know, if that's what you're getting at, I agree. As for companies, governments may pass laws which reduce the taxes paid by corporations, but that isn't an inherent right that anyone has these days. Quote:
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See also: http://skeptoid.com/episodes/4100 Quote:
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Regardless, as you stated "Manufacturers lose and consumers lose. Microsoft wins." I'd counter with Microsoft wins, Manufactures win, consumers don't care and don't notice. Clearly Microsoft wins. The manufacturers also win because they want to profit by selling Microsoft products; Microsoft is what the consumers wants. You could argue that the consumer looses, but there have always been other options. It may have been more expensive at the time, but no body ever put a gun to anyone's head and said, "Buy Windows". Quote:
I'm asking about a hypothetical situation. Not about how it works in the world today. How WOULD it be possible if government was constitutionally prohibited from passing laws regarding a corporation. Quote:
Wow, I can't believe I actually had to argue that murder is not a right. |
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Government must control businesses, to keep them from growing too powerful. Corporations will always influence government, even if government is specifically restricted from making any sort of law that would be beneficial or detrimental to business. They'll find a way because they're too powerful. Corporations dominate government, influence government and markets to get their way, and aren't accountable to anyone, including government. Government must control business, because now they're too powerful and exerting influence over government. Repeat. You're not taking this seriously and I've put in as much as I care to. |
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So you think that choosing the price that's acceptable is enough to keep poison out of milk, lead out of paint, put seat belts in cars, keep financial institutions from lying about their balance sheets, etc.?? :eek: Quote:
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Big Business is responsible, honest, and true, but people in government are evil sobs who want to restrict their freedoms. There's never been any corporate crime. Pay no attention to Mr. Madoff, Enron, Tyco, Countrywide, the shell game being played with people's pensions, etc. Quote:
It's beyond absurd! Nine or ten years ago, I'd have just laughed it off as ignorant foolhardiness that couldn't gain traction. Then it did, and we're suffering the results. Not again. |
Re: The forgotten Social Contract...
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IMHO, greed needs to be tempered by what we might call "the social contract". Unfortunately, no one speaks about that anymore -- and certainly not the bankers that have been bailed out. Edit: Ooops! I appear to have interrupted a duel. ;) Methinks someone has overdosed on Ayn Rand... . |
IMHO, government and big business are the 2 sides from the same coin, and have the same masters, the so called "owners" of everything. Today, the richest 10 percent of adults account for 85 percent of the world's total wealth.
I now predict that society as we know it, will come soon to an end. By next december or January the US$ dollar will collapse. Followed by the collapse of all systems. Government, economy, trade, industry, education, all will stop functioning very soon. Why? Because the system we live today is based on lies, power, fear and greed. The leaders of the world show disregard for the sanctity of human life, disregard for the unity among nations, disregard for growth in the spirit towards realization of universal consciousness, and propagate slavery by keeping the population ignorant in order to fulfill their dreams of power. Everybody knows this. Inequality among nations is the norm, children dying of malnutrition while the granaries of the rich are full (meantime the world produces enough food to feed each person 3 times over. It would cost only 19 billion dollars to end world hunger, roughly the amount the world spends on ice cream every year), with a world economy guided by leaders of nations that are unwilling to change despite destroying our ecosystem, while at the same time the Banks of the rich are overflowing with cash. Greed and the egoistical entities who control this system, will disappear, vanish forever from our planet, as in the coming years, there will be no place for such a destructive force on the way to higher human evolution. |
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I died from minerality and became vegetable; And from vegetativeness I died and became animal. I died from animality and became man. Then why fear disappearance through death? Next time I shall die Bringing forth wings and feathers like angels; After that, soaring higher than angels - What you cannot imagine, I shall be that. Let me put "higher human evolution" in another words, maybe it's easier for you to understand: consciousness, self-realization, unification, reality, universal mind. If none of this words make sense for you, well, then it's not for me to show the way. I would add though, that's not through mind. It can never be understood with such a primitive tool. Mind is like a curtain that doesn't allow you to see. In order to graduate and climb to a higher level, one must let go of the mind. |
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I won't take this discussion any further, as our positions are irreconcilable and I doubt any purpose will be served by it. Have a good <whatever time of day it is in Singapore>! |
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In Lak’ech... |
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