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by libraryatnight 5316 days ago
This may come off as ignorant, because I don't know tons about economics or capitalist history, but is the U.S. capable of surviving a removal of the barriers? Given the size and political influence of our corporations? And flexing my ignorance again, is there a real world example of success for fully free market functioning?

Genuinely interested, but I don't know if I'm expressing myself properly, so don't eviscerate me ;)
1 comments
xorglorb 5316 days ago
If the US were to attempt to remove the barriers to entry, it would have to be very carefully with a scalpel and not destroy them all in one blow with a hammer. One approach which would help curb corporate power would be to start removing the civil liability limits on many sectors. To use the oil industry as an example, the reason BP got off so lightly after causing damage to nearly all industries reliant on the gulf coast was that there was a $75M cap on civil damages, where without that cap, BP easily could have gone out of business after being sued under Tort law.

The United States in it's early days was a decent example of a near-free market functioning, as there was no central bank and minimal regulation on business.

Also, I'm glad to see you're interested in learning more. Economic theory is a very nuanced subject, with many differing opinions, studies and models. One that I wish I knew much better.

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sanjiallblue 5315 days ago
Yeah, because as 2008 taught us, removing regulation and "opening barriers" to free up Capitalism sure as shootin' is the way to go!

Good god... How the hell could anyone argue against regulation after the nightmare the derivatives market has been.

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libraryatnight 5316 days ago
Thanks for the great answer, I appreciate it :) I'll continue reading up, too.
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xorglorb 5316 days ago
By the way, if you are interested in the Austrian School of economics, which advocates a free market, the Ludwig van Mises Institute has a very expansive collection of over 4100 articles, books and essays freely availiable as PDFs and eBooks here (http://mises.org/literature.aspx).

Also, I recommend reading about the Keynesian School of Economics, which advocates central planning in the form of a central bank (The Federal Reserve), so you can best make your own decision. Wikipedia has very good introductions to both schools, and can provide a basis for your further readings.

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