The Last Capitalist

A site dedicated to restoring individualism in the United States of America

Posts Tagged ‘free market’

Even Smart People Can Be Stupid

Posted by jemartynowski on August 5, 2009

Mark Dow, a hedge fund manager, was on video on Yahoo’s finance page here talking about how dumb people are who still believe in free market ideology.  Dow is a pretty intelligent person.  He understands  how markets work and he probably does a pretty good job of determining values of assets.  He most certainly knows a lot of facts about the market and the entire banking/housing problems the country has experienced.  Despite all of this, he’s pretty stupid. 

See, he believes that the free market is why everything failed.  The free market is why the housing market collapsed and why the banks were doing really stupid things.  He goes so far as to say people “don’t recognize the extent to which it failed.”  It makes me sick that someone so intelligent can have such a weak grasp on reality. 

Dow is basing his assumptions on the fact that banks became so crappy because government wasn’t forcing them to do certain things.  This logic is flawed.  The banks were doing and have been doing most of what they do because of political and legal pressure.  Plus, if there weren’t government-created organizations promising to buy bad loans, they would have never been made in the first place. 

I would argue that the opposite of what Mr. Dow says is true.  Had the government been hands-off, we would have never seen the housing market’s incredible, ill-advised run up.  That’s not even mentioning the fact that banks were sued and protested against for not giving loans to people buying houses in parts of the country which could best be described as sh*t.  If you had to make those decisions, would you loan money to someone buying a house in the crappiest neighborhood at a price you thought was way too high?  No, you wouldn’t.  Well, if you were a bank, you’d get sued.  Then, they’d protest your branches and call you racist.  This is followed by the federal government telling you to make those loans and they will guarantee them with Freddie and Fannie. 

Do you know what the result of that would be?  Me too!  Just what happened.  So please, Mr. Dow, don’t try to sell me some liberal spending agenda.  I understand that you want an excuse for the government to give money to people you think deserve it, but, as we’ve gone over many times on this site, that’s just not possible and it’s just not right.


Posted in Capitalism and Politics | Tagged: , , , | 9 Comments »

Government Takes Huge Step Towards Owning Everything

Posted by jemartynowski on May 20, 2009

I know my brother, my dad, and everyone else will tell me I’m stupid for supporting the free market on this one.  When they think of things like the credit card industry and how they charge huge rates on people who default or miss payments, they immediately say, “those people are getting screwed.”  So obviously, it must be good, in their eyes, that the government is stepping WAY beyond their constitutional authority to regulate the credit market.  They are protecting the innocent civilians.

This thinking is why we are on a straight track toward fascism.  We cannot expect the government to come in and fix all of our problems.  If we are stupid enough to screw up a credit card or miss a payment on something, there is a reason they make us pay those huge rates.  If they do not, the company loses money.  Lots of it.  Now, we all know these companies are not going to lose the money the government is telling them to lose.  They are not in the business of charity.   What does this mean for you, the timely-paying, upstanding credit customer?

You are paying more.  From now on, you will have to pay more to borrow, which means you will probably do less of it.  Which means the economy will not have you contributing as much as you have in the past.  It also means, if you are a business owner, you will have less money for innovation.  It means, if credit is cheaper to those who default more, they will borrow more, which is obviously bad for the economy.

When the government interferes, they make things worse.  The world is not perfect.  It never will be.  But every time the president says, “we have to…” insert thing here, he’s trying to stifle the free market.  And when he does that, he only creates a situation that needs more regulation.  And more.  And more. 

The free market may allow for some people to get completely screwed, and I do in fact feel sorry for those people.  But I ask you this:  is it better to save some people from bad credit than to live in a country that does not allow for innovation, stifles creativity, and eventually squashes the individual? 

Sadly, I think I know the answer many people would give.

Posted in Capitalism and Politics, laissaz-faire capitalism, Socialism and Democrats | Tagged: , , , , , , | Leave a Comment »

Daily(ish) Ayn Rand Quote 03/11/09

Posted by jemartynowski on March 11, 2009

There is no fatalistic, predetermined historical necessity. Atlas Shrugged is not a prophecy of our unavoidable destruction, but a manifesto of our power to avoid it, if we choose to change our course.

-“Is Atlas Shrugging?” Capitalism: The Unknown Ideal

Well, this one’s pretty simple.  More so than ever before, Atlas may be shrugging.  There are many productive, smart small business owners getting ready to shut down.  There are multiple reasons for this, including our aging population, higher taxes on them, HUUUUUUUGE advantages for large businesses being handed out by the government.  Since many of these small business owners are hitting retirement age, they are willing to give up on their businesses a little easier.  With all of the negatives the government are starting to stack against them, we should prepare to have the most entrepreneurial people of our society stop providing us with their goods and services if we don’t make things a bit easier for us to act as individuals, not just “cogs in the machine.”

Posted in Barack Obama, Capitalism and Politics, Socialism and Democrats | Tagged: , , , , , | Leave a Comment »

Daily(ish) Ayn Rand Quote 03/10/09

Posted by jemartynowski on March 10, 2009

Property rights and the right of free trade are man’s only “economic rights” (they are, in fact, political rights)—and there can be no such thing as “an economic bill of rights.” But observe that the advocates of the latter have all but destroyed the former.

-from The Virtue of Selfishness by Ayn Rand

It is funny that this “Economic Bill of Rights” that she speaks of is what the current political powers are using to justify their evil moves.  Evil, because they are eliminating rights of others to give them to those they see fit.  Nobody can say that this is alright, but they do a good job of hiding those whose rights are being imposed upon.  We make those people out to be the “rich,” when in fact it is mostly average workers.  The wealth redistribution is just so a few people have the power to decide what to do with our money.  Thanks, guys.  That really helps.

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Gigantic Budget and False Hopes

Posted by jemartynowski on February 27, 2009

Well, the United States Government just passed a huuuuuge budget yesterday. The budget includes the trillion dollar “stimulus” package that redirects our money to where the government thinks it will be better used.  That is, in fact, a complete sham. 

While the government is coming out telling us that we need all of this spending to help improve our financial position, they are completely missing some steps in the logic of it all.  By taking money from some people and redistributing it to wherever they want, they are acting like a dog chasing its tail.  The amount of money in the system doesn’t increase.  They haven’t created any wealth. 

The only reason they could possibly give for doing this is that they will spend our money in a better way than we would.  This is bull.  First, who’s to say what’s “better.”  Isn’t it better if someone uses their money to buy the things they want?  That is how jobs get created.  Second, if we want our society to run better, when have we ever trusted the government to do anything better?  They are people who are crappy (for the most part) in real society and the only thing they do well is kiss ass and suck up to the right people.  They never create anything useful or do useful jobs.  Hell, most of them have law degrees.  Eww. 

Seriously, though, back to the dog chasing his tail.  Society doesn’t get any better from running in circles.  Really, they are just taking the money, taking out a chunk for themselves, then redistributing it.  It’s a net loss for society.  There is no amount of spending that can change the direction of a nation, or the world for that matter, for the better.

Posted in Capitalism and Politics, Socialism and Democrats | Tagged: , , , , , , , | 1 Comment »

Ayn Rand on Barack Obama’s New Socialism

Posted by jemartynowski on November 26, 2008

I figure, now that Obama and his staff our getting all excited and ready to “fix” the economy, it is a good time to go over why everything the government is doing is wrong.  No, it’s not just Obama.  The entire government, with all their bailouts, handouts, or whatever you want to call them, are falling into the Socialist trap.  We want a quick fix so the government is going to give us what we want.  Let’s let probably the most brilliant mind of all time let us know how she would feel about this:

Socialism may be established by force, as in the Union of Soviet Socialist Republics—or by vote, as in Nazi (National Socialist) Germany. The degree of socialization may be total, as in Russia—or partial, as in England. Theoretically, the differences are superficial; practically, they are only a matter of time. The basic principle, in all cases, is the same.

Instead of prosperity, socialism has brought economic paralysis and/or collapse to every country that tried it. The degree of socialization has been the degree of disaster. The consequences have varied accordingly.

 Ayn Rand from The Virtue of Selfishness

The first paragraph is especially important for us to understand right now.  Socialism of any kind, such as the government taking ownership of private property, is socialism nonetheless.  When government can take control of private property, they take control of individuals.  By allowing control of what we as individuals create, we are acknowledging that we are nothing more than slaves.

The second paragraph is stating the obvious.  I hope that this large-scale economic takeover by our government comes to a halt soon because the degree of disaster will get larger with each bailout or whatever they decide to create.  I’m not sure how much more “help” our freedom can survive.

Posted in Capitalism and Politics, Socialism and Democrats | Tagged: , , , , , , , | 1 Comment »