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If the Free Market is So Good, How Come Gov't Has to Save It From Failing All the Time?
Like in the recession when the lending industry and Wall Street took us down? Or more recently when that private firm messed up the Obamacare websites?
If the free market is supposed to make everything better, how come we ALWAYS have to step in to clean the mess they leave behind?
17 Answers
- DallasLv 68 years ago
Because government is trying to fix problems it created. And all polls show the help was never wanted.
Like No 1. The recession ...
Here is the real reason for the 2008 crash.. but it is a little complicated ..
Actually Bill Clinton [Democrat] /Greenspan had more to do with the 2008 mess than Bush. It's all about derivatives [betting that a growing company will fall] and Wall Street. Clinton made derivatives legal after 100 years. He had no idea what they could do. He said that later. Everything is simple once you understand it.
A derivative is like a football game .. the New York Giants are like a stock. Every week they play and they do better or worse. But, the fans in the stands also bet on the outcome - for or against. Giants team can lose but the fans can bet they will lose and win.
That is it. Home builders/banks could not lose. Government backing on one side .. high profits on the other with people who could not afford to buy a home. [In the end we all lost .. jobs and Trillions of dollars].
Today it is called longs and shorts. I trade every day.
No. 2 .. Obamacare web site...
"Obama admin. knew millions could not keep their health insurance"
That is why they allowed the site to have issues... to buy time. Government specifications, requiring up front approval before seeing prices is backwards from all other sites. And a no-bid contract of $600 million is unacceptable. Not to mention the fact it will be too expensive. So government is saving it from it self, not contractors.
"It is estimated that 40% of the defects that make it into the testing phase of enterprise software have their root cause in errors in the original requirements documents. This is a shocking fact not often considered in the design of large software projects. In the case of all of the competing political interests between both different government agencies and political parties, these linguistic errors are even more likely and some may have even been the result of purposeful obfuscation to sidestep contentious issues. Think about the way lawyers (and lawmakers) use language and apply it to software engineering and you get the idea."
- Anonymous7 years ago
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- 8 years ago
We shouldn't save businesses from falling. It is no longer a free market as soon as the government steps in, Broken companies should be allowed to die and that makes room for someone new to fill that gap and succeed with their policies where the other company failed. Think Darwin, and apply it to corporate world and that is what will make a free market great. Only the great will survive. That being said corporations are created by intelligent design and the ones that work the best will survive.
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- Anonymous8 years ago
Because the government creates so many problems.
The recession was caused by government. There's no way around it.
And the Obamacare website? It's OBAMACARE. You don't get more government than that.
Your question reminds me of when Molly Ivins used the US military as an example of a private business. You liberals don't understand the difference between business and government do you?
- ?Lv 78 years ago
The free market is only free if votes can be used to make market corrections.
Mean while conservatives like Allen Greenspan freely admit that the community reinvestment act was not what caused the market crisis.
- GEORGE BLv 78 years ago
It shouldn't. If a company fails let it go bankrupt. Almost always another company will purchase the remaining valuable assets and often in the process few if any jobs will be lost..... like Fiat buying Chrysler and now has more employees than before the sale.
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- xpatinasiaLv 78 years ago
The government has never allowed a totally free market. Your post is based on profound ignorance of reality.
- Universe BearLv 68 years ago
The thing people don't get is that a free market doesn't mean YOUR country is going to do well. Countries that can compete more, like China, benefit more from a free market then others.