fmc83 said:
I actually agreed before in my post(s), that most of the subsidies do hurt poor countries. But that's not my point here. I reckon we both agree, that capitalism is the best economical form humankind has invented yet. But as everything it has it's flaws. One is that, if too much power is accumulated it doesn't work any more. And this was the case with Boeing. So I question if it's a good move to forbid any subsidies even if they're there to keep the system going and are aimed to create innovation. Your answer is free market, even if monopolies already exist - this will solve everything. But the same way as communism in both political and economical senses doesn't work the other extrem regarding the economy doesn't work as well. While you might only be aware of subsidies - we use the opposite in Europe a lot as well. One example is higher taxes on oil. Yes, higher taxes suck for you as a single consumer, but they can create innovation. People want to pay less, therefore they buy more efficient cars. That's probably the main reason, why the US-car-industry is in the shape it is (Bigger sometimes /= better). Next thing, when you propagate a totally free market, you have never-ending growth in mind. But never-ending doesn't happen, you must have a break-down in between. It hasn't really happened in the USA before, but one day you'll face it. One day you'll guys see, that there's no more land to be given to people, no more of your endless looking resources to divide, that the jobs simply won't be there for all of you and than you'll face the some problems Europe has. But the worst thing is, that you went into that with your eyes open and you wasted the opportunity to stay on top for many more years and your fall and probably the fall of the rest of the world will even be harder, because you didn't use the measures available to soft it. And as for the WTO, it propagates a totally free market now, but that doesn't mean that this has the be the case all the time. |
How are they keeping the market going? Airbus as been schelacking Boeing for something like 20-25 years? "To keep up" ended a LONG time ago.
As for competiton, there are anti-monopoly laws in effect as well actually.
If a monopoly exists only because one company is better then all the others... this is a good thing. Keeping a 2nd party in the game by spending money even if their product is inferiror helps nobody.
If the first party ever gets out of control, a second party will emerge with a cheaper option and build from there.
