Sunday, 17 October 2010

"Capitalism" to the rescue

I really shake my head at the persistence of failed Socialist views of the world. The supposed values that leftist thinking is supposed to bring is almost universally trumped by market-based solutions, which come from allowing personal and economic freedoms combined with just the right amount of regulation and law where it is needed (and no more)

One of the last places you would look for evidence of the massive benefits of this wonderful system might be the recent Chilean mining rescue. Have a read, it is revealing stuff.


Anonymous said...

According to Gene Kerrigan in the Indo today on learning of the accident the private company that owned and operated the mind voluntary went out of business rather than face up to the cost of the rescue leaving it to the state mining company to carry out the operation. The state had to also freeze several million dollars of the company's cash to ensure compensation.

Hardly a victory for capitalism. Drill bit or no drill bit if the Chilean State hadn't stepped in the miners would have been left for dead.

Geckko said...

You are talking specifics. Pick another example, BP and Deepwater Horizon, and you see your general claim collapses.

On the other hand, the diversity of technology was available and is available universally thanks to economic freedom. It was also there to help solve the Deepwater Horizon spill - the well was capped far earlier than expected and the clean up far more successful than expected. All due to our wealth and avaailable technology provided by economic freedoms, not centralised planning and direction.

Your valid point, even if you don't realise it, was one I made in the brief introduction to the link:

"...combined with just the right amount of regulation and law where it is needed..."

which is the proper role of those we elect to legislate, regulate, tax us and spend the proceeds on our behalf.

And of course the final point. Who is this "the State" to wom you refer? Would it be people employed by taxing the productivity of those not employed by "the State"?

Anonymous said...

Well I think the point you made without realising it is that there is only a weak correlation between the specifics that you have described and the generality you are seeking to support.

For example technology and innovation predate this thing called "Capitalism" by millenia, just ask the Egyptians, Greeks, Babylonians etc.

Geckko said...

Indeed, technology has been advancing since the dawn of man. However, it was ever dominated by individuals, not centrally planned.

And don't underestimate the stylised fact that technological advancement, as well as advancement in welfare accelerated dramatically with the increase in economic freedom that began in earnest from the late 18th century.