Wednesday, June 23, 2010

Another Inefficiency of Free Market Capitalism

Today conservatives are defending auto dealerships having just carved out exemption to oversight by Obama's financial regulatory overhaul. Here's an example posted on Huffington Post:

tinatoledo31 6 minutes ago (7:32 AM)
stop whining about this stuff. read more, learn more. expand your mind man. stop feeling like you are the victim all the time.

libs act like children who cant be held responsible for their actions. if you learn and read, you wont be duped by a freaking car dealer.
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Well here's some reading for our wonderfully typical conservative poster:

What makes this inefficient of course is the duplication of work. If everyone has to do the same research themselves, it's far less efficient than having one government agency do it once. People have better things to do to advance their lives than research each and every food item they buy, every lawn care pesticide, the safety of every toy or car seat they buy, the build quality of every detail of every home or automobile, etc., etc. Efficient consumer protection in turn thus aids market efficiency.

Of course it's a problem if corporate money determines, influences, or controls government agencies--another reason the influence of money (a conflict of interest) should be severed from what would otherwise constitute a democratic government, via public-only financing of campaigns and elections and influence (campaign ads, etc.). Then government agencies can be judged by their efficacy rather than how much they benefit rich corporate shareholders by sacrificing people's wellbeing, the environment, and so on.

It's also more efficient for taxpayers because they don't have to pay profits to shareholders on top of funding the service.

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