The invisible hand of economics at work
"Scarcity breeds innovation." Thank you, Basic Economics class.
The cool thing is, that concept is actually true. Just look at the way the market has adjusted itself in response to rising oil prices: SUV sales are slumping, small cars are hot items--some hybrids are even back-ordered--and bike sales outweighed car sales over the last 12 months.
Ahhh, the free market at work! As I've argued before, the U.S. (or any oil dependent nation) will never voluntarily wean itself off oil before they are driven to do so by economics. Calls for action and foresight just don't do much; that mysterious invisible hand of economics must be the driving force.
Who knows, maybe more bike riding will help curb obesity rates among American adults and kids. I vote Huffy makes stronger-framed bikes for fat people and change the company name to Hefty. They'd better get on the ball before the public really demands it. Oh wait, that probably won't happen until the economics drives them towards it...
The cool thing is, that concept is actually true. Just look at the way the market has adjusted itself in response to rising oil prices: SUV sales are slumping, small cars are hot items--some hybrids are even back-ordered--and bike sales outweighed car sales over the last 12 months.
Ahhh, the free market at work! As I've argued before, the U.S. (or any oil dependent nation) will never voluntarily wean itself off oil before they are driven to do so by economics. Calls for action and foresight just don't do much; that mysterious invisible hand of economics must be the driving force.
Who knows, maybe more bike riding will help curb obesity rates among American adults and kids. I vote Huffy makes stronger-framed bikes for fat people and change the company name to Hefty. They'd better get on the ball before the public really demands it. Oh wait, that probably won't happen until the economics drives them towards it...
posted by Seth at 2:26 AM
7 Comments:
What an incredible ignorant and hackneyed hymn to free enterprise.
It was the 'free market' that gave us those wasteful SUVs in the first place - not to mention all the overweight people. And, if the free market is so damn flexible, why is there a back-order of hybrids?
In a free market, the destruction of the environment and waste of natural resources are perfectly rational actions. We're getting bitch-slapped by your precious invisible hand, in case you hadn't noticed.
You know, Loyal, you're right. That free market system sure makes life a hell-hole; I'd much rather have that oppressive socialistic system you're married to.
Too true, the free market system isn't perfect (because no system is), but I'll take freedom of speech, ideas, enterprise, and religion over the oppressive regimes that communism and theocracy provide elsewhere in the world.
Hmmm...having the choice to be fat, to buy guzzling SUV's in free market America, or risking arrest just for being a Christian or for having more than one child in China?
You might dislike America, Loyal, but good luck finding anyplace better.
You know, Loyal, you're right. That free market system sure makes life a hell-hole; I'd much rather have that oppressive socialistic system you're married to.
Naturally we live in a country whose prosperity is mostly based on the socialistic aspects of its eocnomy; we've been in decline since Reagan dismantled the Keynesian principles that gave us such robust growth after WWII. And it might be worth noting that countries with 'socialist' economies, such as much of Europe, Canada, and Venezuela, have either higher rates of growth or higher productivity than the U.S.
Too true, the free market system isn't perfect (because no system is), but I'll take freedom of speech, ideas, enterprise, and religion over the oppressive regimes that communism and theocracy provide elsewhere in the world.
Owning private property has nothing to do with freedom of speech, religion, 'enterprise' or ideas. The hundreds of millions of people who live in Western-supported dictatorships will tell you that. 22 left-leaning democratic governments in Latin America have been overthrown by the US because we feared they might not be our economic lackeys anymore.
Hmmm...having the choice to be fat, to buy guzzling SUV's in free market America, or risking arrest just for being a Christian or for having more than one child in China?
China fits most definitions of a free-market paradise. No trade unionism, no cooperative labor, no child labor or overtime wage laws. Since Christianity is at heart a communist ideology, its no wonder the capital-loving CCP should oppose it.
You might dislike America, Loyal, but good luck finding anyplace better.
That's a real dipshit thing to say. I happen to be one of the few people in America for whom the system is working; I'm grateful for what I've gotten, but I understand that it can't be maintained for much longer. For maybe 90% of the people in the US, life would be better in a social democracy. As my Econ professor told us last year after announcing he was moving to Canada: "Life here is not designed to help people out. Things are better in Canada." He was well-educated and had a young family. Clearly, there's not much room here for such people.
Loyal, stop treating me like I'm praising the free market system as perfect and as the single glorious route to human prosperity and happiness. I don't like everything about the free market. There are important environmental issues that pure capitalism ignores, for example. Which is why I support regulations and restrictions to certain degrees. Pure capitalism is an ugly extreme. On the other hand, a socialist state would be a huge, bumbling giant with too much control over my life, not to mention incredible ineffiency. I believe that, like most things in life, a mean should be reached between state and indidual in the economic realm--although my scale tilts toward more individual control.
My "precious invisible hand," which may at times bitch-slap all of us, is also the reason why the U.S. is the richest, most powerful and most prosperous nation in the history of the world.
And another thing: although technically "owning private property has nothing to do with freedom of speech, religion, enterprise or ideas," in the American system which I was praising, all those freedoms are intertwined. Their concepts came about around the same time and were all embodied into our system. Locke, Montesquieu and Burke were significant players in the formulation of individualistic democratic theory, for example, Adam Smith changed the world with his free market concept, and the growth of Protestantism and the Scientific Revolution encouraged people to think for themselves and get involved in the market of ideas. That is the system I love. In my post I was simply praising one example of one aspect of that system.
China, regardless of its economics, is brutally oppressive towards families and Christians, not to mention free speech. If I viewed pure capitalism as the highest good, maybe I'd like China. But I don't, so I don't.
Loyal, the system is flawed because people are flawed. But that doesn't mean it's broken. You sound so stinkin' pessimistic about being "one of the few people in America for whom the system is working." Then why are we still the number one destination for immigrants? As for your Econ prof, I hope he doesn't need medical treatment, but if so he'll probably be making a trip down here.
Here are some stats on the U.S. versus other European nations:
Over the last 45 years (at least), the U.S. unemployment rate has averaged 6.0%, with a high of 9.7% in 1982. Canada's average is 7.2%, with six (non-consecutive) years above 10%, and a high of 11.6%. France's average is 6.6%, with thirteen (non-consecutive) years above 10%, and a high of 11.9%. Germany's average over the last 14 years is 8.4%.
Canada's socialist healthcare system is in the tanks, driving its citizens to get medical care in the U.S. In Northern Ireland there is less of a divergence of wealth in the citizenry, and most things are taken care of, but they pay for it through the nose with high taxes.
From 1990-2001, the average long term unemployment (12 months +) in the U.S. was 6.75% (of the unemployed).
France, 37.75%.
Germany, 48.33%.
Spain, 49%.
Ireland, 47.5%.
Sweden, 22%.
Italy, 57.25%.
GDP in 2001:
U.S. - $35,000
France - $27,000
Germany - $26,000
Spain - $21,000
Italy - $26,000
UK - $26,000
Unemployment is an extremely unreliable measure of economic prosperity, as it does not account for what happens to those people when they are unemployed. In Europe, they can do all right. In America, people who used to make $100,000 a year are reduced to bankruptcy after a relatively short period of unemployment.
As for Canada's health care system being 'in the tank', this does not account for why The US ranks highest in per capita health-care spending (twice as much as Canada), yet 30% of the population is uninsured or underinsured, its citizens don't live as long as Canadians, they die more of cancer, they must go through more bureacracy, Canadian administrative costs are only 1% of all expenditures (compared to 2.5% for America),. There may be a few people travelling to the US to get highly specialized or unnecessary treatments unavailable where they are, but what about the droves of Americans sneaking into Canada to buy drugs? This also doesn't explain why some 75% of Americans want Canadian-style health care, while only 5% of Canadians want the US system.
I originally emailled this to Seth, and I post it here for all to see:
Boy oh boy, you've struck a chord with me on the health care issue. I'll say this, our "free universal health care" is anything but free, and it certainly isn't universal. My insurance premiums are in the neighbourhood of 75 dollars a month. For most students it is less (I wasn't paying anything while at college because I was a full time student with no job), and if you are "low income" you don't pay as much. In the 1990's, huge numbers of Canadian doctors moved south because they could open private practices and earn five times what they earn here. That has only changed because the government is now spending more on health care. Last year, the federal government spent $130 billion dollars on health care. That is 130 billion dollars of taxpayer money to provide a service to all Canadians. And do you know what that service provides? A one-size-fits-all monopoly. In British Columbia we have three cancer clinics. One in Vancouver, one in Victoria, and one in Kelowna. I don't know if you have looked at a map of BC recently, but all three of those cities are within six hours of each other, and all are located in the southern fifth of the province. There are plenty of good doctors in the town I live in, but good luck if you need surgery. It will be at least six weeks, even for "simple" surgery like a hernia repair.
Everytime I have to see my doctor, I have to wait at least a half hour before he is able to check me out. It is like that with EVERY SINGLE DOCTOR IN SMITHERS, and I kid you not, there are at least 15 of them (not bad for a town of 6000). When I had my hernia surgery several months ago, the hospital did not give me an appointment, they told me to show up at 7:00 in the morning and as soon as the surgeon could do it he would. I should be thankful that he was able to get to me within three hours of my arrival to the hospital, there are plenty who are not so fortunate (and that was after waiting two months for my "apointment").
In any other service industry, if you have to wait half an hour for service, you go to the place down the street (ie, do you eat at restaurants that make you wait long to serve you? I didnt think so).
Now, I have talked an awful lot of bad about our system, but there are some positives. For instance, last week I was really really ill with flu-like symptoms. Well, on Sunday night I finally broke down and went to the hospital to get checked out. They gave me some Tylenol3's and a prescription for a codeine-based cough syrup. It was nice to be able to go there and do that without having to shell out several hundred bucks for the privilege of visiting them.
Although, when I think about how much taxes I pay, and how much comes off my paycheque, and what my premiums are, I think I would like to have more of a choice.
Perhaps we need to look at the European model. They have a "universal" socialized service coupled with private practices that are not discouraged. Right now, if I am not satisfied with my health care services, I have no choice. At least over there if you feel as though you are getting the shaft you can take your money and pay for better service. Most of the wealthier folks probably do this, and it frees up spots for lower-income people.
As for Loyal's remark about 30% of US not having insurance, you have to ask yourself, "why"?
If I was living in the US, the first thing I would do is find myself a reputable insurance company AND GET SOME FREAKING INSURANCE!!!!!! Even if it costs me a bundle, I would sacrifice other things in order to afford it. There are lots of health insurance companies in the US, surely a person can find a reasonable affordable one (I mean, it must be possible to get basic coverage for 100 bucks a month).
In fact, I just did some snooping for free insurance rates, and for me (27 year old male, non smoker) I got the following:
https://www.ehealthinsurance.com/ehi/Quote.fs;jsessionid=DMJgph7kshXjXpyHZ8ybpwpB21kp3gKbCPQcMQ251ydJYThJmyqB!1337660419!-2139006475
Pretty good rates for pretty good coverage, I'd say. And you would get your choice of doctor, hospital, etc etc etc and if the hospital screwed you over you could sue them (not so nice) or SWITCH HOSPITALS (VERY NICE!). Even a minimum wage earner should be able to afford 45-100 dollars a month. If they cannot, they need to either GET A BETTER FRIGGING JOB or STOP BLOWING THEIR DOUGH ON BOOZE AND SMOKES!!!!!
Two years ago, there was a mix-up at a hospital in Calgary, Alberta. A patient was given the wrong medicine by a lackey who could not distinguish between labels, and that patient died. Was there an investigation? Nope. Did anyone get fired? Probably not. AND STUFF LIKE THIS HAPPENS A LOT!!!!! The level of accountability of publically funded hospitals is ZIPPO.
And when doctors start making noise about wanting private clinics, they are stomped into the ground by the government: http://angrygwn.mu.nu/archives/096833.php
It really really sucks.
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