Moved from D1 forum

[kandrathe]

Capitalism, in theory, is the most absolute fair and ideal system ever.

Generally, I agree. And, it is because it is "atomic" that it works. That is, stable systems (the corpus) usually are built from subsystems (organs), which are built from well differentiated building blocks (cells). Each of us is just an individual contributor to the entire economy, and our decisions don't mean anything unless they form a majority. Allowing people to price their own labor, and to exchange that labor for a wage, then take that wage to barter for goods and services is the crux of democracy. Our efforts therefore are directed towards those things that we want, whether that be a donation to relieve hunger in Africa, a donation to a political campaign, or to purchase an iPad. And, I've attempted to make this case before... When the government burdens the citizen with large taxes, especially on their labor (wages), they sap that individuals power directly in proportion to that individuals efforts. This is why I would be much more in favor of taxing spending, than taxing wages. Even if that meant you build in some form of progressiveness to make certain "needed" items tax exempt, and scaled them for things like houses, and vehicles.

I think where it breaks down is when you remove competition for crucial commodities. There are always bogus attempts to tear down corporations, like the NFL. They are not technically a monopoly because what they sell is entertainment, and we can find other forms of entertainment if they price themselves out of the consumers willingness to pay.

But, say it were an oil monopoly, then if one corporation or many colluded to create a shortage, well, then that is the type of malfeasance of monopoly. I suspect that this is the case currently. The demand for oil is continuously rising, but our governments are bent on curtailing any new domestic sources, and are dragging their feet on reissuing existing leases. This may be to cater politically to an environmental minority, but only a fool would sell his home before establishing a new place to live. Hitting "world peak oil" in the summer and fall of 2008 was the pin prick that popped the housing bubble which cascaded into this last recession/depression in the economy. I fear our government leadership is toying with setting an oil price that will motivate people to migrate away from fossil fuels, however, the risks, chaos and harms are great and "we the people" may not agree with that strategy. I would favor a public strategy to migrate away from fossil fuels that is bold and decisive, with a set time table, and clear objectives.

I believe there should be more scrutiny on the laws regarding the differences between an individual and a corporation. Currently the courts are treating the rights of a corporation akin to the rights of an individual, and that may give very powerful corporations more access to their rights than is afforded to individuals (i.e. they can afford many of the best lawyers).

An example; I know of a man who was injured on the job. He fell 5 stories down malfunctioning elevator shaft. The door opened, he stepped in and there was no elevator there. Needless to say he was disabled. He had to fight in court for a decade to get any compensation for his agony and injury. During that time he lived in extreme poverty and suffered greatly. This injustice was due to the power of the corporation in avoiding their responsibility.

So, while not perfect, with government playing the watchdog to reign in corporate abuses, the system works. On the other hand, the government can get over protective as well, as I've discussed before with bad legislation, like the Consumer Protection and Safety Improvement Act of 2008 which wastefully forces everyone to test and retest everything and forces hand made, cottage, and small businesses undue hardships.