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genepool
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Why freedom leads to prosperity
Oct 4th, 2015 at 9:54pm
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Some of us prefer no government at all anarchy
Some of us prefer regulations on everything
Some of us are in the middle. Libertarian wants government to prohibit fraud and force.

This is what's actually happen.

Say I go to a store and spend $50

In the absence of fraud or force I will be able to get more than $50 for $50 I spend. Why? Because I am selfish. I would not exchange $50 to something more than $50.

I think it make sense that many people wants government to "protect" them from things that may lead to bad deals, such as force or fraud. Notice that making government prohibit bad deals itself will be too problematic.

One obvious such protection is prohibition of fraud or force. Maybe some people think that fraud or force should be handled by free market too. So if you're gullible or weak you're death. That's fine. I can understand why most people would prefer a minarchist rather than anarchist.

Now, what about government protection beyond fraud or force? If you invest $1000, shouldn't you be able to know that the money won't just evaporate due to some terms not clearly seen? US government requires insurance companies to declare amount of money they paid out of insurance. I think that would be reasonable too.

The problem is government may require disclosure of something complex, such as weather a food is kosher or not.

But that's not where problems end when governments demand something far more sinister.

Say I go to a store and spend $50. Chance is I don't get $50 in return. Chance is I got $100 or $150. Why? What motivates stores to sell something worth $150 to me for $50? Fear of lawsuits?

No. Fear of competition. Competition is quite often the first and last defense consumers have against bad deals.

Now that what's usually happen when government regulate or over regulate?

Competition alone would give you a good deal, say 150 for your $50.

However, government also wants to protect stores that can only give you $100. So what's usually happen is government would ban or prohibit the store that's giving you $150 worth of happiness to protect those who can only give $100.

Sample is uber, prostitution, ganja, polygamy. Government prohibit uber, which is better than most taxi. Government prohibit prostitution to protect males that can't pay. Also many women prefer sharing a super rich guy than be the only one for a poor ones. Ganja is safe. But it let you get high safely. So government prohibit that.

Government regulation did little against bad deals where you get $20 out of your $50.

Complications arise when you want better deals than what others get. That's usually means deals that you know are good but look bad for everyone else.

So the best deals out there are deals that most people think are bad.

And that's why I hate most regulations. As customers I am made worst off by regulations.
  
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Dissident Right
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Re: Why freedom leads to prosperity
Reply #1 - Oct 5th, 2015 at 8:21pm
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Why white people people with high IQs lead to prosperity

(title edit)
  
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genepool
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Re: Why freedom leads to prosperity
Reply #2 - Oct 5th, 2015 at 9:34pm
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The higher the IQ the more likely they get rich productively and come up with ways to cooperate more amicably.

The lower the IQ the more eating your friend is the only way to win.
  
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genepool
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Re: Why freedom leads to prosperity
Reply #3 - Oct 5th, 2015 at 9:37pm
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Back to the topic.

Imagine 10 stores selling things worth $100 when you spend $50. One store, sell things worth $150. All those stores selling $100 will be out of biz and the "new" industry standard is you get $150. That one store that give $150 will dominate the whole market share.
  
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Jeff
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Re: Why freedom leads to prosperity
Reply #4 - Oct 6th, 2015 at 9:35am
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Quote:
Why white people people with high IQs lead to prosperity

(title edit)

Having everybody who is able to make any contribution that is valued by others, from unskilled manual labor to theoretical physics, working in their own interests, as they see them, and being allowed to keep the fruits of their labor, is what creates prosperity.
  

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Jeff
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Re: Why freedom leads to prosperity
Reply #5 - Oct 6th, 2015 at 9:37am
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genepool wrote on Oct 5th, 2015 at 9:37pm:
Back to the topic.

Imagine 10 stores selling things worth $100 when you spend $50. One store, sell things worth $150. All those stores selling $100 will be out of biz and the "new" industry standard is you get $150. That one store that give $150 will dominate the whole market share.

You don't even understand that free market exchanges don't happen unless both parties receive what they believe to be equal value?
Or that free competition absolutely prevents monopoly?
  

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jzk
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Re: Why freedom leads to prosperity
Reply #6 - Oct 6th, 2015 at 11:22am
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Jeff wrote on Oct 6th, 2015 at 9:37am:
You don't even understand that free market exchanges don't happen unless both parties receive what they believe to be equal value?
Or that free competition absolutely prevents monopoly?


Exchanges happen when the parties believe they are getting more value than what they are giving.
  
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Jeff
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Re: Why freedom leads to prosperity
Reply #7 - Oct 6th, 2015 at 2:53pm
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jzk wrote on Oct 6th, 2015 at 11:22am:
Exchanges happen when the parties believe they are getting more value than what they are giving.

In what universe?

If I agree to exchange my labor for $60/hour, everybody that hires me either believes they're getting $60/hour of value, or they don't hire me again, or they fire me, or they sue.
I try to give good value for what I charge.

Both parties usually think they got a fair deal.
  

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stevea
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Re: Why freedom leads to prosperity
Reply #8 - Oct 6th, 2015 at 3:49pm
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VALUE is subjective.   It's IMO the most useful result of the Austrian school of economics, and exposed Marx's "labor theory of value" as clearly false.

Value is not worth nor is it price - use the right lingo.
  
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stevea
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Re: Why freedom leads to prosperity
Reply #9 - Oct 6th, 2015 at 3:51pm
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Jeff wrote on Oct 6th, 2015 at 2:53pm:
In what universe?

If I agree to exchange my labor for $60/hour, everybody that hires me either believes they're getting $60/hour of value, or they don't hire me again, or they fire me, or they sue.
I try to give good value for what I charge.

Both parties usually think they got a fair deal.



No !  Anyone who hires you believes they are getting MORE than $60/hr of value.
You OTOH believe the $60 is worth MORE than the hour of your time.
It's axiomatic that every voluntary free-market exchange creates net value.


If you each thought the trade was just par (no added value) you  wouldn't bother.
Why (for example) would you exchange all your $20 bills for 20 - $1s unless you expected a higher value (e.g. at a strip club).


FWIW I feel the Austrian school of econ produce a few interesting gems of insight into economics, but it's mostly non-quantitative approach failed to go anywhere interesting in the past 80 years.

https://wiki.mises.org/wiki/Subjective_theory_of_value
« Last Edit: Oct 6th, 2015 at 5:25pm by stevea »  
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