Tickerguy tells it like it is

I haven’t linked this site yet and I should, since it’s one of my daily reads – the Ticker Forum.  Nothing whatsoever to do with the hobby, it’s an economy site.  Very informative.  The fellow who runs it, Karl Denniger, has been quoted in congressional session and made appearances on the Dylan Ratigan show.  I tend to stick to the Market Tickers, General Stock and FedUpUSA, with emphasis on the Tickers – daily (and often several times daily) blog posts by Denniger to insert some reality into the econ news of the day.  I’ve never registered on this site though, because most of the discussion is just a bunch of “yeah! me too!”.  Good reading though.

Sine Chevalier and I are having such a good little discussion down below, I wanted to share this so everyone could see it (but mostly for Chevalier).

Why We’re Heading For a Collapse

If y’all feel like it, in the (very long) response pages, Sharon on page three summed up my feelings quite well.

I think entitlements are pretty much an inevitable product of not having a free-market economy–which is really another way of saying that welfare for the rich (monopolies, subsidies, regulation, tax breaks) creates a demand for welfare for the poor.

The reason it creates a demand for welfare for the poor is because the monopolies, subsidies, regulation, tax breaks, etc., for the rich is because the effect of the average guy/gal is to increase the costs of stuff they buy (or degrade the quality, which is the same thing as increasing the costs), shift the tax burden onto them, and make it impossible for them to compete in business or be self-sufficient in some other way.

I really think that there is no other way to address this issue, other than by FIRST doing away with ALL welfare for the rich: No subsidies, bailouts, government regulation, licensing, tax breaks, monopolies, etc.–NO FAVORS, FOR ANYONE.

Before we can shut down Medicare and Medicaid, we need a genuine free market in medical care. Back when we did have a free market in medical care, the average doctor made about as much as the average plumber.

If you can’t have industrialized agriculture, factory farms, knee replacements, kidney transplants, airlines, or sports stadiums without subsidies, then this tells you something about the real demand for this stuff (vis-a-vis costs), absent subsidies. IT AIN’T THERE.

If a business can’t locate in your area without tax breaks or a sweet deal through industrial revenue bonds, it’s because there is no real market for their ****, based on real prices based on real costs. The only way to get people to pay for it is to force them to, at gunpoint.

This gives rise to a demand to force them to give it to you “for free,” at gunpoint. This demand is based on the fact that you probably already paid for it, either through taxation or through being put out of business or out of work.

Free markets have to come first.

They won’t, so the cycle will continue. For awhile.

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Published in: on December 12, 2010 at 8:55 am  Leave a Comment  

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