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HappySqurriel on 08 March 2012
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Rath said:
HappySqurriel said:
Rath said:
 

While I agree that political influence of corporations does rely on the government regulating things - true free-market capitalism would kill the planet, kill people and screw workers. It's a really bad idea to allow corporations to have completely free rein.

Personally I don't think the problem in America is with the capitalism - it's with the system of government. Capitalism doesn't require that the corporations have to have the ability to make donations and fund campaigns to bribe politicians into voting for things that favour them.

I don't see why "true free-market capitalism would kill the planet, kill people and screw workers" ...

For the most part, companies (regardless of whether they're large corporations or small businesses) are driven to act in ways that their clients/customers, investors, and employees desire; and this is rarely in a way that is excessively damaging in the long run.

Because high risk entails high rewards. If you can release a drug onto the market without adequate testing that will net billions of dollars a company will. That drug could then end up causing huge damage. If you can drill an oil well for much cheaper than it currently can be done a company will. That well could then end up causing huge damage. The aim of regulation is essentially to force companies to lower risks because there is an inherent relationship in business between risk and reward.

If you release a drug onto the market without adequate testing you will face a massive class-action lawsuit and lose billions of dollars. If you dig an oil well that causes environmental damage you will either face a substantial fee to clean the land imposed by the land-owner or face substantial negative coverage due to the influence of environmental groups.

Realistically, I don't think anyone is arguing for the elimination of all government regulation, but the vast majority of government regulation is completely unnecessary and primarily designed to protect the interest of large powerful incumbents.