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I am a far left socialist. It is a fallacy to conclude that socialism = authoritarianism; that is essentially Sovietism. Karl Marx's socialist philosophy included an anarchist government, not an authoritarian one. Another example is Star Trek, pure socialist (they don't even use currency) and for the most part an anarchic society with other institutions in place. Star Fleet obviously has an order, but they are also a military organization.



I describe myself as a little dose of toxic masculinity.

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sapphi_snake said:

@Kasz216:

So your best argument against price rationing is that it takes up time? Really? It requires time and planning, therefore it's bad. Expected response.

I'm curious, if you're financially ruined after having spent a fortune on normal everyday products like water and bread what good is all that time you saved not standing in line gonna do now that you're broke and can't buy materials to fix your house? And what if the prices of the materials are inflated also? Then even if buying basic supplies doesn't bankrupt you, you're still not gonna be able to rebuilt your house. But you do have time of course. Time to stare at the ruins of your former house. Let's celebrate!

ADDITIONALLY, there is no motivation to bring in or have extra product available in the area.

Here's an ideea: people need the products and are willing to buy them. Since you make products and you make money that way, and it's pretty much guaranteed that people will buy your products, shouldn't this be motivational enough? Or are companies just upset that they can't take advantage of people's misfortune and screw them over by charging 10x as much?

Buisnesses are profit driven.  Profit Driven over the long term.  There are few buisnesses that would sacrifice a long term consumer base for a short term gain.

Yet businesses do this all the time. Price gauging is seen very negatively, and could very well be damaging to a company's reputation. In this day and age, when consumers care about their rights so much, and when activism is rampant, it wouldn't be that unusual for some people to get upset with a company that practices price gauging during a disaster, and subsequently leading to a massive boycott of the company's products (and I assume no company wats this). I understand that when demand rises, so do prices, however the real world isn't like the abstract economical model you envision. Such speculation is viewed negatively by most people. You're making the same mistakes you accuse communists of making: not understanding human nature.

Disasters are a time where companies should take advantage of the situation and try to improve their reputation, which will have long-lasting benefits for the company (customers will like the company, become more loyal to it, which are  very important today when emotional elements are the prime factors which differentiate companies). Of course, lots of companies don't take this into considerations, and I'm not surprised liberterians don't either, especially since you like to look back with awe at the capitalism of the beggining of the century, where you could screw the consumer over however you wanted, and no one said a thing.

A)  Actually my best arguement is... it doesn't work.  Hence why it was abandoned.  It's been tried everywhere, and never worked out.    Though yeah, time kinda is a big factor.   That and the supply issue.

B) People are willing to buy those products EVERYWHERE.  Not just the disaster area.  So why not put stuff there?  Well because you have a much higher risk of losing product.

C)  Except... they don't.  Not to a level that people find unfair.  You say this is the case yet offer no proof.

D) You STILL have yet to argue against the fact that more people die under price gouging and quantity fixing.  Supply is wasted  and people die under your system.  That's a fact you've yet to even attempt to refute.  If your willing to let more people die for your definition of "fairness", just say so, and we can end this here.

Again, i'm seeing no economic arguements, only untrue statements that have been disproven by the already provided economic studies.

In otherwords, put up or shut up.

I've provided plenty of economists papers, including a case study and a formula model and economic consensus.

You've provided.... nothing outside of opinions which are disproven by the very data and expert opinions presented... and just a logical breakdown of the situation and causes, which you haven't even refuted being the case.

All you've done is say "This way has negatives too!"

However, every system has negatives.  The positive of "more people living" outweighs any of those negatives.

 

Since this is off topic and gone on for a while, if you wish to continue I suggest you start a new thread titled "This is why more people won't die under price controls and quantity fixing and link to it here.  I'd suggest actually having a supply and demand formula or some economic reasoning behind your arguement that goes against the presented models and real world case studies.  Versus your current "This is true because I say it is, despite the presented evidence" approach.  You are boardering on the whole creationism style of arguement.

You are making the same mistake.  As an Walter Williams once set "Passionate issues require dispassionate analysis."

In general the experts have spoken.  Experts CAN be wrong... but to prove experts wrong... you need well evidence if not to the contrary at least to destroy their own models.



Kasz216 said:

A)  Actually my best arguement is... it doesn't work.  Hence why it was abandoned.  It's been tried everywhere, and never worked out.    Though yeah, time kinda is a big factor.   That and the supply issue.

B) People are willing to buy those products EVERYWHERE.  Not just the disaster area.  So why not put stuff there?  Well because you have a much higher risk of losing product.

C)  Except... they don't.  Not to a level that people find unfair.  You say this is the case yet offer no proof.

D) You STILL have yet to argue against the fact that more people die under price gouging and quantity fixing.  Supply is wasted  and people die under your system.  That's a fact you've yet to even attempt to refute.  If your willing to let more people die for your definition of "fairness", just say so, and we can end this here.

Again, i'm seeing no economic arguements, only untrue statements that have been disproven by the already provided economic studies.

In otherwords, put up or shut up.

I've provided plenty of economists papers, including a case study and a formula model and economic consensus.

You've provided.... nothing outside of opinions which are disproven by the very data and expert opinions presented... and just a logical breakdown of the situation and causes, which you haven't even refuted being the case.

All you've done is say "This way has negatives too!"

However, every system has negatives.  The positive of "more people living" outweighs any of those negatives.

 

Since this is off topic and gone on for a while, if you wish to continue I suggest you start a new thread titled "This is why more people won't die under price controls and quantity fixing and link to it here.  I'd suggest actually having a supply and demand formula or some economic reasoning behind your arguement that goes against the presented models and real world case studies.  Versus your current "This is true because I say it is, despite the presented evidence" approach.  You are boardering on the whole creationism style of arguement.

You are making the same mistake.  As an Walter Williams once set "Passionate issues require dispassionate analysis."

From a strictly economical POV, disregarding human beings and considering them mere figures on some table, your ideea is perfect. If that's the answer you wanted to hear then there it is. Sadly for you, it's a very limited POV, but alas, we all must chose which lords to serve.



"I don't understand how someone could like Tolstoy and Dostoyevsky, but not like Twilight!!!"

"Last book I read was Brokeback Mountain, I just don't have the patience for them unless it's softcore porn."

                                                                               (The Voice of a Generation and Seece)

"If you cant stand the sound of your own voice than dont become a singer !!!!!"

                                                                               (pizzahut451)

sapphi_snake said:
 

From a strictly economical POV, disregarding human beings and considering them mere figures on some table, your ideea is perfect. If that's the answer you wanted to hear then there it is. Sadly for you, it's a very limited POV, but alas, we all must chose which lords to serve.


Saving more lives is disregarding human beings?  I think we have very different definitions of what "disregarding human beings" means.

For me... it's letting people die for meaningless ideals that aren't even served by the laws inacted. (Since the poor are still likely to be screwed, and more poor will die under such a system.)

Ask most family memebers, and i think they'd say they'd rather people save their relatives then their inheretance.

Most would rather live out of government emergency shelters as a family, then be missing people and have their possessions largely intact.

The only issue is, most people are ignorant to the economic realties of the situation and don't realize that price gouging laws actually do cause more deaths... and polticians love to pander.

The difference between us is you are taking an initial emotional response to an issuse.  While I am rationally observing it, then applying my emotions to the situation to see if the rational situation is the more beneficial one... and I'd say saving more lives is emotionally more beneficial.

You are placing money ahead of human life.  Your just looking at things too irationally to see it.

 

Aside from which, one thing in which I think you seem to miss is, that while Rich peoples lives aren't worth anymore then poor peoples lives... they also aren't worth any less.



Kasz216 said:
sapphi_snake said:
 

From a strictly economical POV, disregarding human beings and considering them mere figures on some table, your ideea is perfect. If that's the answer you wanted to hear then there it is. Sadly for you, it's a very limited POV, but alas, we all must chose which lords to serve.


Saving more lives is disregarding human beings?  I think we have very different definitions of what "disregarding human beings" means.

For me... it's letting people die for meaningless ideals that aren't even served by the laws inacted. (Since the poor are still likely to be screwed, and more poor will die.)

Ask most family memebers, and i think they'd say they'd rather people save their relatives then their inheretance.

Most would rather live out of government emergency shelters as a family, then be missing people and have their possessions largely intact.

There are other ways to avoid the people dying situation, of course they require time, and socialism-type situations, both of which are a big no no for soem people I guess. Ironically, the research paper you quoted said that the reason products run out very quiclkly is because people buy lots due to the fear of prices increasing. In the end it's all a sort of self-fulfilling prophecy.

The part in italics is a typical compromise that only takes into consideration the short term. It's not about keeping you possessions intact, it's about not losing EVERYTHING. You may lose your house to the tornado, but must you lose your money to greedy speculators too? This isn't some grand Hollywood narrative where the victims are heroically save, then End Credits. Life goes on, and it's one thing to lose most of your possesstions to a natural disaster, but to loose what little you have left afterwards to immoral sharlatans? I'm sure that can be avoided.



"I don't understand how someone could like Tolstoy and Dostoyevsky, but not like Twilight!!!"

"Last book I read was Brokeback Mountain, I just don't have the patience for them unless it's softcore porn."

                                                                               (The Voice of a Generation and Seece)

"If you cant stand the sound of your own voice than dont become a singer !!!!!"

                                                                               (pizzahut451)

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sapphi_snake said:
Kasz216 said:
sapphi_snake said:
 

From a strictly economical POV, disregarding human beings and considering them mere figures on some table, your ideea is perfect. If that's the answer you wanted to hear then there it is. Sadly for you, it's a very limited POV, but alas, we all must chose which lords to serve.


Saving more lives is disregarding human beings?  I think we have very different definitions of what "disregarding human beings" means.

For me... it's letting people die for meaningless ideals that aren't even served by the laws inacted. (Since the poor are still likely to be screwed, and more poor will die.)

Ask most family memebers, and i think they'd say they'd rather people save their relatives then their inheretance.

Most would rather live out of government emergency shelters as a family, then be missing people and have their possessions largely intact.

There are other ways to avoid the people dying situation, of course they require time, and socialism-type situations, both of which are a big no no for soem people I guess. Ironically, the research paper you quoted said that the reason products run out very quiclkly is because people buy lots due to the fear of prices increasing. In the end it's all a sort of self-fulfilling prophecy.

The part in italics is a typical compromise that only takes into consideration the short term. It's not about keeping you possessions intact, it's about not losing EVERYTHING. You may lose your house to the tornado, but must you lose your money to greedy speculators too? This isn't some grand Hollywood narrative where the victims are heroically save, then End Credits. Life goes on, and it's one thing to lose most of your possesstions to a natural disaster, but to loose what little you have left afterwards to immoral sharlatans? I'm sure that can be avoided.


Except... there aren't.  We've already been over this.  You JUST agreed to that.  The numbers bear out that price is the quickest and most efficent way to make the most out of supply and demand.  If government took over the local companies (what i guess your talking about?)  It's still price controls and quantity limits.  Just with even more government inefficency since they need to coordinate and take orders from Washington.  It still doesn't adress supply, heck I don't even think i mentioned the various added costs of transporting supplies to a disaster area.  (There are a lot.  Hazard pay, having to avoid ruined roads, possibly differnent trucks, higher risks of products neer reaching their destination.)

Any socialist type situations... which we do use.... take LOTS of time to put into effect.  This isn't an arguement about FEMA or any of that stuff.  The fact that stuff exists is even MORE proof for why Price controls are wrong.

FEMA+ "Price gouging" = the best solution.  Once FEMA (or whatever your disaster agency is) hits the ground, prices will go down but still remain high... and then people have the choice between wasting their time, or their money... while before they do hit the scene the product that is there is best utilized and those there is tons of incentive to increase supply there, including people who normally wouldn't deal in such supplies.

Yeah, the way to avoid that is.... dieing... well that or robbing people.  You say your sure it can be avoided, yet don't have an idea of how it can be avoided... a logical person would concede they were wrong until they did have an idea of how it could be avoided and would want to go with the way that saves more lives until such a system could be found.

It would be like being against seperating conjoined twins to make sure one lives when the chances are both will die, because at some point in the future we're sure there will be a better way to save both twins.

All that kind of thinking gives you is a lot of dead twins.



mrstickball said:
Badassbab said:
mrstickball said:


I agree it was a lethal mix. You can't incentivize bad behavior (promoting government-backed loans to minorities to improve home ownership) while negating risk. It allows for systemic exploitation of the free market, which causes it to collapse. That is why my view is that we must remove all Keynesian policies from the government and let the free market determine the amount of risk needed in the system - which is likely to be far more fiscally conservative than was ever allowed during the sub prime crisis.

Yes but a key problem with the idea of free market is that it has never fully existed (like communism in fact) so can't really compare. Reason it's never really existed in it's most pure state is because it probably wouldn't work. In economics you have what's called externalities and companies just do not take it into account because what's important is the bottom line. The current crisis was (amongst other reasons) because of a lack of regulation and too much risk. The financial institutions, banks, loan sharks, credit agencies etc had free reign to lend/advise money, Governments took a step back and let them get on with it. That's a fairly free market thought. The religious like invisible hand school of thought didn't work.

But again, the reason the government 'took a step back and let them get on with it' was that they initiated the activity themselves. As I said, the government incentivized the bad behavior by removing systemic risks from loaning to certain parties. That is certainly not a free market activity. For example, look at when American home ownership began to skyrocket in late 1994 through 2006. Did the banks initiate a new policy in 1994? Yes. The government forced them to add new policies to lend to people, which resulted in them starting to take on more loans than what was reasonable (due to government rules/regulations incentivizing them to lend to minorities). In addition, CRA1995 continued the reckless behavior of the Rigele-Neal Interstate Banking Act, and continued to ensure that banks would be taking on more systemic risks due to regulations (trying to get rid of redlining) - not de-regulations.

Look at the data - from 1994 (institution of the Rigele-Neal Interstate Banking Act) to 1998 (prior to the Gramm-Leach-Billey Act and CRA 1999 revision), home ownership skyrocketed from 64% to 67% which 3/5ths of the increases between 1994 and the peak of American home ownership at 69% in 2003.

If de-regulation was the entire culprit as you suggest, then the data should prove it. However, the data shows an inexplicable jump in American home ownership in 1994/5, not when Glass-Steagal was repealed in very late 1999 (November 1999). I will gladly admit that CRA1999 contributed to the collapse, but the issue was initiated by the government - CRA1999 merely prolonged the issue as banks were able to hide the assets they were required to loan because of the governments intervention in the markets. Therefore, the free market wasn't the culprit - government intervention was, re-regulation was merely a player in the events.

Certainly, there was 'too much risk' - risk that was forced upon the market by the government, whereby they required and/or incentivized banks to loan to people that could not afford it. The predatory lending/subprime crisis was created by the government which wished to increase home ownership rates as a mean of boosting the economy. They incentivized the risk by pressuring institutions like Fannie Mae to meet specific goals for loaning to low and middle class people which were well in excess of free-market standards (30% versus 10%, give or take).

In the end, we provided $700 billion in TARP funds for part of the crisis, and may provide up to $360 billion to bail out Fannie & Freddie - those who took on the burden of the CRA's socialist goals - which failed utterly.

I fully agree that a totally free market is likely to never happen, but the housing crisis should be significant proof that governments intervening in the market can have significant, if not devastating, consequences.

I thought the following were de-regulation i.e removing forced Federal and State regulations of the free market (and all three contributed to the financial crisis)

Community Re-investment Act- Made credit default swaps legal. This was not regulated at all and free market did not introduce a self regulatory body to oversee it.

Rigele-Neal Interstate Banking Act- Allowed banks to operate nationawide. Surely de-regulation of the financial sector?

Gramm-Leach-Bliley Act- Allowed security, insurance and bank companies to operate in all financial sectors and not just their own specific areas. I can't see how this can be described as anything but de-regulation of the financial sector.

All of the above were initiated and passed because the Senators and others in power (like from the Treasury) who advocated such acts were generally speaking from the financial sector. Massive conflict of interest if you ask me. Between serving the good of your nation and it's majority inhabitants and the good of Wall Street. Key word again here is 'externalities'. I can't see how any of the above can be blamed on Keynesian economics. I mean it's like the last 6-7 administrations kept parts of the Keynesian economics that would make them and their buddies in the financial sector wealthier but ditched all the regulatory part thanks to the work of Friedman and co. Cronyism I call it.

If you look at the growth of the US during it's Keynesian years, it was much more egalitarian (though it rocketed post war and decades after that), wages were relatively speaking better and the average American had a better quality of life. For the last 30 years though, wages have stagnated (relatively speaking) and most of the wealth generated through deregulation and monetarist economics have gone to a small yet very powerful elite. The US economy pre 2008 Financial crash was more free market then it had ever been though some would argue not enough and not a 'real' free market as I'm sure a lot of mega corporations such as the big banks must of known they were too big to let fail and hence there would always be a golden parachute waiting to rescue them in a worst case scenario.

What I find unbelievable is Obama is hiring the very people who liberalised the financial sector to put the house back in order!



Badassbab said:

I thought the following were de-regulation i.e removing forced Federal and State regulations of the free market (and all three contributed to the financial crisis)

Community Re-investment Act- Made credit default swaps legal. This was not regulated at all and free market did not introduce a self regulatory body to oversee it.

Rigele-Neal Interstate Banking Act- Allowed banks to operate nationawide. Surely de-regulation of the financial sector?

Gramm-Leach-Bliley Act- Allowed security, insurance and bank companies to operate in all financial sectors and not just their own specific areas. I can't see how this can be described as anything but de-regulation of the financial sector.

All of the above were initiated and passed because the Senators and others in power (like from the Treasury) who advocated such acts were generally speaking from the financial sector. Massive conflict of interest if you ask me. Between serving the good of your nation and it's majority inhabitants and the good of Wall Street. Key word again here is 'externalities'. I can't see how any of the above can be blamed on Keynesian economics. I mean it's like the last 6-7 administrations kept parts of the Keynesian economics that would make them and their buddies in the financial sector wealthier but ditched all the regulatory part thanks to the work of Friedman and co. Cronyism I call it.

If you look at the growth of the US during it's Keynesian years, it was much more egalitarian (though it rocketed post war and decades after that), wages were relatively speaking better and the average American had a better quality of life. For the last 30 years though, wages have stagnated (relatively speaking) and most of the wealth generated through deregulation and monetarist economics have gone to a small yet very powerful elite. The US economy pre 2008 Financial crash was more free market then it had ever been though some would argue not enough and not a 'real' free market as I'm sure a lot of mega corporations such as the big banks must of known they were too big to let fail and hence there would always be a golden parachute waiting to rescue them in a worst case scenario.

What I find unbelievable is Obama is hiring the very people who liberalised the financial sector to put the house back in order!

I think your pulling facts out of acts that offered de-regulation, without the other aspects of the laws which sought to incentivize bad market behaviour through Keynesian economics. All of the acts which had de-regulation also included new guidelines for these larger banks to follow.

For example, the CRA did make credit default swaps legal, but its primary goal was to ban redlining.

 

The Community Reinvestment Act of 1977 seeks to address discrimination in loans made to individuals and businesses from low and moderate-income neighborhoods.[7] The Act mandates that all banking institutions that receive Federal Deposit Insurance Corporation (FDIC) insurance be evaluated by Federal banking agencies to determine if the bank offers credit (in a manner consistent with safe and sound operation as per Section 802(b) and Section 804(1)) in all communities in which they are chartered to do business.[3] The law does not list specific criteria for evaluating the performance of financial institutions. Rather, it directs that the evaluation process should accommodate the situation and context of each individual institution. Federal regulations dictate agency conduct in evaluating a bank's compliance in five performance areas, comprising twelve assessment factors. This examination culminates in a rating and a written report that becomes part of the supervisory record for that bank.[8]

The law, however, emphasizes that an institution's CRA activities should be undertaken in a safe and sound manner, and does not require institutions to make high-risk loans that may bring losses to the institution.[3][4] An institution's CRA compliance record is taken into account by the banking regulatory agencies when the institution seeks to expand through merger, acquisition or branching. The law does not mandate any other penalties for non-compliance with the CRA.[6][9]

Or in other words, if you want federal loan guarentees, you must follow their low-income (e.g. risky) loan regulations. Further CRA revisions did offer some de-regulations, but many came at the cost of adding more incentives for loaning to low-income citizens. For example, Riegle-Neal act also added new TILA regulations which were immediate (whereas the allowance for mergers was fully adopted at a latter date - 1997 - while the data may suggest that the new TILA regulations had a far more immediate effect). Additionally, during the same time period, you had Executive Order 12892 which expanded the reach and abilities of HUD, which again likely contributed to the housing explosion in 1994.

That is my whole argument: We have to look at the explosion of 1994 which created the boom, which led to all the major problems such as the subprime lending crisis, which with the assistance of credit default swaps resulted in the crash. Therefore, my view is that such deregulations as you mentioned did not cause the inflation which led to the problem, although they assisted in it.

I believe that the problem is that we've enabled a hybrid Keynesian-Friedman alliance in which markets were de-regulated, but risk was socialized in order to spur consumer demand, which has created a screwed up market with fewer risks than what are needed to keep the market honest. The question then becomes an argument of which came first: the Keynesian policies or the free-market policies.



Back from the dead, I'm afraid.

I thought I'd be more right. I usually tell others that I'm moderate but I only do that to avoid confrontation. I guess I am kinda close to moderate. I guess being bisexual had some effect on my compass.



sapphi_snake said:
Viper1 said:
sapphi_snake said:

That first article looks like propaganda itself. It was even written by a right-winger from Poland. His argument regarding people giving more to the poor now is quite nonsensical. IT's almost like comparing apples to oranges.

Actually, libertarianism advocates social help from the people.  Donating, giving time to volunteer, etc...   The concept is the poor get help more directly instead of through a middle channel (government) so that service is much more efficicent and personal.   It also provides a better economy in that there would be fewer poor to begin with and helps guide those that are poor but are capable of taking care of themselves to do so instead of relying on an entity to do that for you.

Other than t being more "personal", I really don't see any benefit (and honestly, this benefit is more to satisfy a selfish need of the people who volunteer, rather than help those in need). I don't see how private charaties in their current form do any of the underlined.

The problem you are seeing is government itself.  The private sector can never fully service the market if the government is offering much the same services.  In fact, the government corners the market in some facets making it extremely difficult for the private sector to offer services at all.  Not to forget the red tape involved.  The government gets in the way to the point that for many people they feel it's not worth the BS.

But the real kicker is that the government at times of emergency will actually ban non-government aide and support.  I recall during Hurricane Katrina that FEMA forced dozens of full sized 53' trucks to turn around and dozens already there to leave.  They were actualy from Wal-mart, full of food and supplies and were there long before FEMA showed up.  The Department of Homeland Security also prevented the American Red Cross from supplying food.



The rEVOLution is not being televised