Laissez Faire free-market ideology requires : 1. A minimal state that provides law and order and property rights 2. A free market that is liberated to run without regulation except for matters arising from point 1 The belief is that a reduced state allows for a much bigger, more vibrant economy, one that is liberated to be operating as efficiently as possible, free from tariff, subsidy, pricing and other state regulations. As with all extreme views, this is flawed by failing to take into account the big picture - it is not a holistic ideology because it has insufficient natural mechanisms for protecting welfare and the environment. It is like designing a car to have an optimally efficient engine, but forgetting the overall car budget, with the consequence that the passengers are left with no heating, air conditioning, and a bumpy ride. Any ideology regarding the governance of a nation must embrace all aspects of that governance, not just the economic ones. So here is a list of some of the shortcomings that I have occurred to me. Many of these shortcomings can only be resolved by matters outside of market operations : * The state must operate for free because there are no taxes in a pure free market to pay for them * The welfare of poor, disabled, unhealthy and incapable will be at the mercy of philanthropists as the market has no obligation, via taxes, to pay for that welfare (look to the very poor in Asia and Africa, for example, and see how little the rich act philanthropically) * If you become ill or incapicitated and your health insurance and life insurance do not completely support you in your infirmed state, then you too will join the above group, and rely on good will of others * Only those that can afford to pay for education will be educated, since education will not be subsidised by taxes * Limited liability companies will not exist as a smoothly operating market will extract debts due. Any money earned by a failing business owner will be passed to his debtors. * Be prepared to pay a fixed fee plus tolls to drive your car on the privately owned roads and railways that lace across the country, since there is no state to build them * Expect to have cigarettes advertised and sold to children * Expect foodstuffs with no labels - without regulation there is no need for them to declare the contents unless favourably so * Be prepared to work on poor terms because the market will not be obliged to embrace unions
Posted on: Wed, 03 Dec 2014 14:21:03 +0000
Trending Topics
Recently Viewed Topics
© 2015