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[[folder: Divisions on How Governments Should Exert Control over Markets]]

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[[folder: Divisions [[folder:Divisions on How Governments Should Exert Control over Markets]]

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* Supply-side economists such as Thomas Sowell advocate for an economic system that would trim regulations. This, in turn, would lead greater production/economic output that would then, at least in theory, benefit both owners and workers. Main proponents of this economic system were Reagan (whose brand of supply-side has been dubbed “Reaganomics”), George W. Bush, and currently Donald Trump. Supporters of the system defended it claiming that it lead to the success in the 1980s. Opponents claim that it is the system lead to the early 90s recession, Japanese lost decade, and the Great Recession, claiming that removing the regulations from certain industries like Wall Street lead to them giving loans to people with dubious capacity to repay it if it went bust. Supporters claim that other factors lead to these recessions. Supply-side lost support in 2008 after the collapse was blamed on deregulation, although it still has its supporters, such as political commentator [[Creator/BenShapiro Ben Shapiro]].

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* Supply-side economists such as Thomas Sowell advocate for an economic system that would trim regulations. This, in turn, would lead greater production/economic output that would then, at least in theory, benefit both owners and workers. Main proponents of this economic system were Reagan (whose brand of supply-side has been dubbed “Reaganomics”), George W. Bush, and currently Donald Trump. Supporters of the system defended it claiming that it lead to the success in the 1980s. Opponents claim that it is the system lead to the early 90s recession, Japanese lost decade, and the Great Recession, claiming that removing the regulations from certain industries like Wall Street lead to them giving loans to people with dubious capacity to repay it if it went bust. Supporters claim that other factors lead to these recessions. Supply-side lost support in 2008 after the collapse was blamed on deregulation, although it still has its supporters, such as political commentator [[Creator/BenShapiro Ben Shapiro]].Shapiro.


** Related, but not as direct as outright banning are quality and/or safety Regulations. Things like requiring seat belts and airbags in automobiles, making sure your food is safe to eat, the water and air aren't polluted, and that things are what they claim to be is the floor of this, and it can get far more complicated. Even more than banning, where to draw the line on regulation is '''hotly''' debated between different groups.
* ''Bailing Out Companies'': Some companies are considered "too big to fail" . If they go under, their suppliers may have to lay people off or go under as well because of the lost business. In situations like this the government can step in but this is very controversial. Opponents saying doing this prevents companies from learning from their mistakes and enforces the behavior that required the bailout in the first place, however, the people most often proposing a bailout are also the people most likely to support regulations that would prevent further occurrences of that "bad behavior". Bailouts are actually a wide variety of fiscal practices, ranging from a simple loan from the government to short-term nationalization of the firm. (IE, the government owns the company for a certain period of time.)

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** Related, but not as direct as outright banning are quality and/or safety Regulations.regulations. Things like requiring seat belts and airbags in automobiles, making sure your food is safe to eat, the water and air aren't polluted, and that things are what they claim to be is the floor of this, and it can get far more complicated. Even more than banning, where to draw the line on regulation is '''hotly''' debated between different groups.
* ''Bailing Out Companies'': Some companies are considered "too big to fail" .fail". If they go under, their suppliers may have to lay people off or go under as well because of the lost business. In situations like this the government can step in but this is very controversial. Opponents saying doing this prevents companies from learning from their mistakes and enforces the behavior that required the bailout in the first place, however, the people most often proposing a bailout are also the people most likely to support regulations that would prevent further occurrences of that "bad behavior". Bailouts are actually a wide variety of fiscal practices, ranging from a simple loan from the government to short-term nationalization of the firm. (IE, the government owns the company for a certain period of time.)


->''Capitalism is not an "ism". It is closer to being the opposite of an "ism", because it is simply the freedom of ordinary people to make whatever economic transactions they can mutually agree to.''
-->--'''Thomas Sowell'''

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->''Capitalism is not an "ism". It is closer to being the opposite of an "ism", because it is simply the freedom of ordinary people to make whatever economic transactions they can mutually agree to.''
-->--'''Thomas Sowell'''


* ''Enforcing Property Rights'': Stealing is wrong. Not only is theft generally agreed upon to be morally damaging to the individual who steals, and causes suffering to those who are stolen from, but widespread theft (such as the looting that occurs in riots) creates massive market inefficiencies. Fraud is considered a form of stealing (as theft by trick) so it would fall under this.

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* ''Enforcing Property Rights'': Stealing is wrong. Not only is theft generally agreed upon to be morally damaging to the individual who steals, and causes cause suffering to those who are stolen from, but widespread theft (such as the looting that occurs in riots) creates massive market inefficiencies. Fraud is considered a form of stealing (as theft by trick) so it would fall under this.


* ''Enforcing Property Rights'': Stealing is wrong. Not only is theft generally agreed upon to morally damaging to the individual who steals, and causes suffering to those who are stolen from, but widespread theft (such as the looting that occurs in riots) creates massive market inefficiencies. Fraud is considered a form of stealing (as theft by trick) so it would fall under this.

to:

* ''Enforcing Property Rights'': Stealing is wrong. Not only is theft generally agreed upon to be morally damaging to the individual who steals, and causes suffering to those who are stolen from, but widespread theft (such as the looting that occurs in riots) creates massive market inefficiencies. Fraud is considered a form of stealing (as theft by trick) so it would fall under this.


->''"Well first of all, tell me: Is there some society you know that doesn’t run on greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. Henry Ford didn’t revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about, the only cases in recorded history, are where they have had capitalism and largely free trade. If you want to know where the masses are worse off, worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system."''
-->--'''Milton Friedman''' (abridged)


'''Capitalism''' is an economic and political system in which a country's trade and industry is controlled by private individuals, rather than the state.

The essential feature of Capitalism is the incentive to make a profit. Both parties need to voluntary exchange to have their own interest in the outcome, but neither can obtain what they wants without addressing what the other wants. It is this motivated self-interest that can lead to economic prosperity.

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->''"Well first of all, tell me: Is there some society you know that doesn’t run on greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. Henry Ford didn’t revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about, the only cases in recorded history, are where they have had capitalism and largely free trade. If you want to know where the masses are worse off, worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history Capitalism is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system."''
-->--'''Milton Friedman''' (abridged)


'''Capitalism''' is an economic and political
political-economic system in which a country's trade and industry is controlled by private individuals, rather than individuals and groups are allowed to own and profit from capital/the means of production: the state.

The essential feature of Capitalism is
physical, non-human inputs used for the incentive to make a profit. Both parties need to voluntary exchange to have their own interest in the outcome, but neither can obtain what they wants without addressing what the other wants. It is this motivated self-interest that can lead to production of economic prosperity.
value, such as facilities, machinery, tools, infrastructural capital and natural capital.


->''"Well first of all, tell me: Is there some society you know that doesn’t run on greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed? ... The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. [[UsefulNotes/AlbertEinstein Einstein]] didn’t construct his theory under order from a [[ObstructiveBureaucrat bureaucrat]]. Henry Ford didn’t revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about, the only cases in recorded history, are where they have had capitalism and largely free trade. If you want to know where the masses are worse off, worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system."''
-->--'''Milton Friedman'''


to:

->''"Well first of all, tell me: Is there some society you know that doesn’t run on greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed? ... greed The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. [[UsefulNotes/AlbertEinstein Einstein]] didn’t construct his theory under order from a [[ObstructiveBureaucrat bureaucrat]]. Henry Ford didn’t revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about, the only cases in recorded history, are where they have had capitalism and largely free trade. If you want to know where the masses are worse off, worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system."''
-->--'''Milton Friedman'''

Friedman''' (abridged)



* Carl Menger: Introduced the theory of Marginalism and the Subjective Theory of Value. Léon Walrus and William Stanley Jevons made similar discoveries at roughly the same time, but Menger's work is considered the most complete.

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* Carl Menger: Introduced the theory of Marginalism and the Subjective Theory of Value. Léon Walrus and William Stanley Jevons made similar discoveries at roughly the same time, but Menger's work is considered the most complete. The 'Marginal Revolution' heralded the end of the acceptance of the Labor Theory of Value outside Marxist circles and with it the decline of Classical Economics, to be superseded by Neoclassical Economics.


'''Capitalism''' is an economic and political system in which a country's trade and industry is controlled private individuals, rather than the state.

to:

'''Capitalism''' is an economic and political system in which a country's trade and industry is controlled by private individuals, rather than the state.


* Adam Smith: Wrote ''The Wealth of Nations'', laying the philosophical foundations of the capitalist system. What Smith actually referred to with his "invisible hand" metaphor is ''not'' the same as how the metaphor is often used today. Instead of saying that an "invisible hand" will correct market failures and that regulations are thus unneeded, he was saying that international trade would not harm domestic production because the "invisible hand" of home bias would lead people to invest in their own country. That one time he used the metaphor was stretched well beyond his original meaning. He was also more suspicious of the wealthy and corporations than is often mentioned, even giving his support to a progressive taxation system that lessens the burden on the poor. He also believed that the British colonies would be better off as independent and trading partners with the Crown, and he also realized that the administrative and protection costs of these colonies would ultimately be greater than any profit they managed to bring the Crown.

to:

* Adam Smith: UsefulNotes/AdamSmith: Wrote ''The Wealth of Nations'', laying the philosophical foundations of the capitalist system. What Smith actually referred to with his "invisible hand" metaphor is ''not'' the same as how the metaphor is often used today. Instead of saying that an "invisible hand" will correct market failures and that regulations are thus unneeded, he was saying that international trade would not harm domestic production because the "invisible hand" of home bias would lead people to invest in their own country. That one time he used the metaphor was stretched well beyond his original meaning. He was also more suspicious of the wealthy and corporations than is often mentioned, even giving his support to a progressive taxation system that lessens the burden on the poor. He also believed that the British colonies would be better off as independent and trading partners with the Crown, and he also realized that the administrative and protection costs of these colonies would ultimately be greater than any profit they managed to bring the Crown.


The essential feature of Capitalism is the incentive to make a profit. As Adam Smith, the father of modern economics, said: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Both parties need to voluntary exchange to have their own interest in the outcome, but neither can obtain what they wants without addressing what the other wants. It is this motivated self-interest that can lead to economic prosperity.

to:

The essential feature of Capitalism is the incentive to make a profit. As Adam Smith, the father of modern economics, said: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Both parties need to voluntary exchange to have their own interest in the outcome, but neither can obtain what they wants without addressing what the other wants. It is this motivated self-interest that can lead to economic prosperity.


* '''Property''': less production due to risk of theft, freedom of individuals or companies to steal.
* '''Contracts''': less consumption due to suspicion, freedom of powerful individuals or companies to dictate terms to others.
* '''Bankruptcy''': less lending and investment due to increased risk.

to:

* '''Property''': '''Property'''. less production due to risk of theft, freedom of individuals or companies to steal.
* '''Contracts''': '''Contracts'''. less consumption due to suspicion, freedom of powerful individuals or companies to dictate terms to others.
* '''Bankruptcy''': '''Bankruptcy'''. less lending and investment due to increased risk.

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