Sub-prime Bail Out

[DanaC]

The invisible hand absolutely exists and absolutely works 100% of the time.

I do not believe it has been truly tested, anymore than I believe communism has been truly tested. Even the most hands off gvernments aren't actually hands off. Rules and laws relating to trade are skewed in favour of a particular class and even in a predominately laissez faire government such as America's there are such things as trade protectionism, subsidies and corporate welfare.

[Radar]

Originally Posted by DanaC

I do not believe it has been truly tested, anymore than I believe communism has been truly tested. Even the most hands off gvernments aren't actually hands off. Rules and laws relating to trade are skewed in favour of a particular class and even in a predominately laissez faire government such as America's there are such things as trade protectionism, subsidies and corporate welfare.

I tend to agree with you on capitalism not being fully tested, but not communism. Communism was setup the way it is described by Marx, but it never lasts because it violates human nature. What is the motivation for one person to produce more than another when there is no more reward? People who do more naturally want more than the guy who does less.

History has proven many times over that the more a country embraces socialism or communism, the more likely that country is to collapse financially under its own weight and beg capitalists to bail them out. Communism always ends up being totalitarianism because an iron fist is required to force people to violate their own nature.

Socialism and communism require force to exist, while capitalism does not. In capitalism every person is a winner in every transaction because every transaction is voluntary and each person will do what is in their own best interest.

I have a dollar and I want an apple. You have an apple and you want a dollar. I buy your apple for a dollar. We both win. Some will claim I was ripped off for paying a whole dollar for an apple, but to me it was worth the price. Nobody forced me to give up my dollar for an apple.

If I had been walking in the desert for days and was starving and the guy sold me the apple for $100, I am still not a victim. The value of the apple rises the more I want it.