I don’t believe in a free market system because we don’t have one. “Believing in” a free market is sort of like believing in the easter bunny.
But the reason that we don’t have one is that the current corporate form that the current legal system allows makes free markets impossible. This is not a matter of political principle of “belief.” Its just a matter of reality. Given the current state of affairs, the economy, by and large, will be controlled. It will either be controlled by very large, powerful, private organizations (corporations) or very large, somewhat less powerful, public organizations (the state) - or more likely a tug of war between the two. If the state does just keep its hands off, this will not be Bedford Falls that we’re in. It will be Pottersville. Anyone who wants the beautiful world that Adam Smith promised should take a happy pill and join all of the other Utopians. Or at least get onto a more realistic picture of the world. The issue is not what the government - in particular - does or does not do. The issue is how the kind of corporation that we have completely changed the world and gave us big govt/big corporation as an MO for social power.
Since this has evolved into whether the GM and Chrysler should have been bailed out, I’ll add my 2 cents. The government shouldn’t be in charge of picking winners and losers. There is a demand for X number of new cars, had GM, Chrysler or both went under, the buyers of those cars would have had to go to someone else to buy them, Ford, Honda, Toyota, etc. So for a short time the price of new cars would have gone up, until the production of new cars was ramped up by the other manufactures. That would mean at least some of those cars would have been built in the US. I’d go as far as to say most because the other manufactures don’t have the space, buildings etc, to ramp up production to cover the loss of production from GM or Chrysler. With GM or Chrysler in bankrupt or closed down that would mean there would be many buildings up for sale that are already set up to build cars and on top of that there would already be skilled workers who want jobs.
In all likelihood a group of investors would have formed a new company then they would have bought up all the good stuff and left all the bad stuff behind. They would have put in new management and negotiated new contracts, and maybe move the factories to another state. This would have been done without taxpayers being on the hook for anything. What would have emerged is a company or companies that would have been leaner and stronger. Then GM and or Chrysler, assuming the new company didn’t buy the old name, would have joined the 100’s of car companies that are now longer in business.
meanjoe75fan
“Given the “red state/blue state” split of the GM bailout, I wonder how many critics would be logically consistent and decry “the Gipper’s” intercession in free-market economics?”
I would and do, HD has made and continues to make many very bad decisions. Can you name the innovations HD has come up with in the last 20 years? Don’t get me wrong HD is very good at marketing its image. Even though they want to be the “All American” motor cycle they are far from it, but it’s the image they have. They also sell the “bad boy biker” image to many middle-aged men (generally) who want to show people they aren’t really middle-aged. There are many exciting things happening in the motorcycle world and HD isn’t part of it. Why did Dodge come up with the tomahawk eight years ago (2003) instead of HD. HD should done that concept bike. Look at the front end of the tomahawk, upper and lower control arms instead of a fork. HD could come up with a very small V8 with many of the looks of tomahawk, to get out in front of the crowd and LEAD instead of sitting back and saying we are the best. Instead of leading what does HD worry about? Whether or not the engine goes potato potato when it idles. Sooner than HD thinks a bike company will come along and is fresh and exciting, will they then ask for tariffs again, until they can catch up? Or will they too ask for a bailout?
Who knows, maybe if GM and Chryco went under, they might have sold MORE cars going outta business than they would have staying in business. If someone wanted to take a chance and buy a “liquidated” car, then they might have gotten a great deal on a new car.