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Originally Posted by Baraka_Guru
Okay, so does this mean that you do support at least a modicum of regulation, taxation, tariffs, etc.?
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Yes. Tax policy should be directly related to real costs to society. Government has a role in measuring those costs and collecting payment through tax policy, including tariffs. When government goes beyond that and goes beyond doing what they do best (i.e. - national defense), there is a net harm or cost to society in my view.
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If you do, then you don't support true free-market capitalism, which more or less relies on laissez-faire. For the record, there is no practical application of free-market capitalism on a large scale, though people have tried it in studies, labs, and computer simulations.
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Capitalism is not laissez-faire. Laissez-faire in my view is anarchy. Captialism is a system with a structure.
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So what would you rather, the lack of problems under communism and socialism or the problems of managing a mixed economy?
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Communism and socialism has had problems with the people in charge of those systems as opposed to the systems themselves. Using nature as an example, where we can take the leadership problem out of the equation, we can clearly see where communal based systems thrive. Mixed economies will favor the few at the expense of the many. Free market capitalism favors efficiency at the expense of the inefficient. With that said, I do support social programs for children, the elderly and the disabled. From a morality point of view, I guess I am not a true purist, however, the mixed systems as you discuss them go far beyond that.
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How so? Are you referring to the nanny-state protectionism they benefited from?
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Yes. Government was used to allow favoritism and protection. Using railroads as an example, what was the true value of the land used by the railroad barrons compared to the price they actually paid? Why were they allowed to exploit land usage? Government policy is the answer, the free market had no voice. At the time government thought they were doing good by granting land rights, they were, however, they did not get the real true value of the land in exchange. That is just one example.
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Because other than that, there wasn't much else going on that would be considered significant mixed-economy contributors to the robber barons. Is there something I'm missing?
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Yes. The military. When the US used its military to protect corporate interests, as it had done in the past on occasion, those costs where incurred by everyone, but benefited a few. For example the US Civil war was fought for a few reasons, one being the institution of slavery and its relationship with the cotton industry in the South. If not for the cotton industry the war would not have been fought and slavery would have ended sooner as it had in many European nations and Canada - no wars on the issue - no single big industry to protect.
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I've corrected you on this before. You call our wealth in natural resources "the one thing we have" when our economy is far more dependent on services and manufacturing. You know, the U.S. has a shitload of natural resources as well. How's that working out for you?
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I know, the Canadian economy is diverse. However, the economy without the oil/mineral resources is not sustainable - hence the "one thing they have". That is what will save Canada's ability to continue their social spending. Perhaps my point is too subtle, I can't say it any clearer.
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Then don't call it the creation of real wealth. You can't create wealth without some kind of profit. The difference between the time, work, and/or money spend to get something versus the amount that you got is considered either profit or a loss. There are various ways to measure this, but there you have it.
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If it takes me 100 hours to do X, but I can reduce that time to 50 hours. I now have 50 hours to either do nothing leisure (no profit involved) or use that time to do more work (profit involved). Either way, the quality of life improved, standard of living improved.
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It's not necessarily the most common motivator overall, but if you want to create wealth, you necessarily must earn profits. That's how you get more than what you already have. If you don't get more than you already have, you don't earn a profit. If you end up with less than what you have, it's called a loss. Are we talking about wealth or something else?
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I don't have the words to make my points clearer. I really don't know what more to say. From my point of view, you are taking very simple statements and concepts and distorting them, even if it is by a small amount, to be argumentative.
For example I thought I made clear that creating wealth and generating profits are different - or that it is not clear what is meant by "profit" when you use the term. There are financial profits as measured by fiat currency and there are general profits as measured by personal well being. I don't know which you refer to, but I tried to explain that in my view there is a difference.
At this point in the discussion two things are clear. One of us is correct and one either wrong or not understanding the other, or two, neither of us will be moved by any point made by the other. Stalemate. All I am doing is re-stating my views in different ways.