Why do people think that some economic regulation is bad?

All economies have regulations.

Pure capitalism will always eventually result in a small rich class, no middle class and a vast poor class.

Revolutions, in part, happened in Cuba, China, France and Tsar Russia because of uncontrolled capitalism.

Anyone who truly thinks that capitalism will regulate itself is living in a fantasy world.

Government is there for a variety of reasons, one is to make sure that the rich cat doesn't have iron fist rule.

One area I believe needs regulation is to eliminate the huge wholesale buying power the big box stores enjoy. What better way to encourage entrepreneurship then to level the playing field. I mean really, who in their right mind would open up a corner hardware store in a city with a Home Depot and Lowes to contend with? Where I live in China, the playing field is level and I see ma and pa stores competing side by side with WalMart and Home Depot. If they can do that and have an economy that is growing by 7% even during these times, why can't we?

Peace

Jim

.

What is freedom? Freedom is essentially choice. You can CHOOSE to fail and starve yourself to death. (its sad but true) OR you can CHOOSE to succeed. Even if you make a couple dollars and only spend a couple quarters eventually you'll have $20. Simple math. Universal Health care is wrong on a couple levels. First you don't deserve anything just because you are alive and breathing. You EARN your way in society or the society is going backwards. PERIOD

Second, You would lose choice of doctor and pretty much everyone would get the same over extended and (if government were running ), under budgeted amount of care where nobody would be served. Being under budgeted the doctors would lose incentive and thereby lose care of the patient.

The laws have to be refined as society changes with new ideas being developed and new inventions being put to use. America did suggest that we put more money into research and bring fine products rather than put the money into the existing industry to develop it. The Obama government in its new term should tackle this and take a firm decision on which way the economics will play. Its a Rhinestone Christian cowboy with a Nobel Prize and his compromises on the road to his horizon who has set the trends.

Sweden doesnt police the world and it has protectionist policies instead of free trade agreements - as far as me agreeing with their politics it stops about there .

You dont need any regulation except one for a truly free market to work -

You must make individuals/shareholders/employess/boards liable or accountable for corporations actions and remove entirely the legal cover incorporation provides -Once people are personally on the "hook" with their own assets and money at stake will they begin to act responsibly

There are a number of problems that government regulation brings to the economy:

First: There is too much temptation to fiddle with things in order to achieve political goals. (The current mortgage crisis can be traced directly to government mandates that a percentage of mortgages be given to minority and disadvantaged groups - thus banks were forced to make loans to people who were poor credit risks.)

Second: Special interest groups can manipulate things by giving money to candidates who will enact policies that benefit them (look at the labor union laws and how they distort the labor market).

Third: Progressive taxation creates a situation where the majority can vote to have the tax burden shifted onto the few. (70% of the tax burden in the us is borne by 30% of the taxpayers)

Fourth: Progressive taxation in effect takes the money that is most likely to be reinvested into the economy. (It is the rich who invest capital to create and grow businesses.)

Fifth: "Fair trade" is in the eye of the beholder and is generally s smokescreen for the subsidy of uncompetitive industries.

BTW - you cannot 'ensure fair market competition' and have 'fair trade' at the same time. Either one will limit the other.

Both viewpoints are fair. Some believe economic regulations are the way to go, and others think it's dangerous... and both sides have strategies and tactics for convincing others that the opposing side is dead-wrong.

The tactic used by those against such regulations happens to be calling it socialism. That word automatically strikes fear in the hearts of a lot of people, so it's a powerful strategy.

It's interesting that you mentioned Sweden, and I agree-- they've got a good thing going. I think what the people you're criticizing are worried that works for one society and culture might not work quite the same way in ours.

Because last time I checked- this was a capitalist society and we are becoming a socialist society. I like freedom and prosperity better than socialismm

Because some people think there should be none just as some people believe that the government should run everything, these would be the extremes. There is currently too much regulation and that over-regulation led directly to the economic problems we are having today..

Denmark is also a Social Democracy.

They have no illiteracy, very low unemployment, very low crime rate and their infant mortality is almost nil.

But don't try to confuse some people with facts. They'll think exactly the way Rush or Matt or Sean tells them to think.

Almost all government regulation is bad.

The job of the government is to create boundaries and very general guidelines. The more the government micromanages, the more the economy is slowed under the burden of rules and requirements.

Freedom is what generates jobs and innovation.