Besides megalomaniacal politicians, the biggest of the free market haters are the big bankers. Right now, they're winning, and you're losing.
Big bankers hate the free market. It's too risky. The free market forces you to be responsible for your economic choices. Big Bankers, on the other hand, just want to get pornographically rich. Because of their lust for money and power, big bankers encourage government to become involved in their transactions in order to protect them from the results of their failed risks. Government is more than happy to take their risks and fix their messes, because in doing so, government can gain more control over your life.
The reason for our current economic crisis is not "The Free Market". It is that government has bailed out most of the big bankers--at your expense. Incidentally, government has not bailed out
Multiple millions of government dollars--all of which at one point belonged to you and me--were given as bonuses to the big bankers after they took risks that failed and that would, under normal, free-market circumstances, have caused their banks to fail and them to never be hired in the economic industry again.the little banks. It goes without saying that they haven't bailed you out, either.
Whenever big banks and big business make a profit, it's theirs to keep. That is called "privatizing profits". But have you noticed that whenever they take too big of a risk and something goes wrong, all of the rest of us pay for it? This is called "socializing losses". Now, if anyone asks you whether the United States is a relatively socialist nation, you can tell them yes and then explain to them why. In every socialist experiment--including ours--that has been foisted on the masses of humanity, the elite get socialized and the rest of us get screwed.
When banks have to suffer the consequences of their own bad risk taking, they are much more disciplined. When they know they have friends in government--including in the central bank--they know that they don't have to be disciplined.
Incidentally, government has not bailed out the little banks. It goes without saying that they haven't bailed you out, either.That's why throughout history, to ensure that they didn't have to pay for their failed risks, big bankers have lobbied for a central bank--controlled by big bankers and their friends in government.
We have one of those in the United States. It is called the
In every socialist experiment that has been foisted on the masses of humanity, the elite get "socialized" and the rest of us get screwed.Federal Reserve, or "The Fed". "The Fed" has been able to create trillions of dollars whenever it has wanted to, and has given that money to whomever it has wanted. It has even refused to tell anyone to whom the money was given. But I'm sure you can guess who got most of that money.
In the past couple of years, the largest (and only the largest) banks received hundreds of billions of dollars of economic assistance from government following their failed risk taking. Multiple millions of those dollars--all of which at one point belonged to you and me--were given as bonuses to the big bankers after they took risks that failed, and that would, under normal,
Have you noticed that whenever they take too big of a risk and something goes wrong, all of the rest of us pay for it? This is called "socializing losses". Now, if anyone asks you whether the United States is a relatively socialist nation, you can tell them yes and then explain to them why.free-market circumstances, have caused their banks to fail and them to never be hired in the economic industry again.
Prior to the advent of the Federal Reserve, the United States was on a "gold standard". The gold standard gets in the way of the visions of big bankers. So, gradually, the gold standard was phased out. A gold standard makes it difficult for the central bank to arbitrarily expand the money supply, which causes the price of everything to go up. When the central bank (The Fed) expands the money supply, the new money finds its way first into the hands of the big bankers, who get to buy things with it before the price of everything
The Central Bank tends to cover the risks of only the largest banks, causing them to get even bigger. Eventually these banks become so big that they are designated as "too big to fail".goes up for the rest of us.
The Central Bank tends to cover the risks (i.e. bail out) of only the largest banks, causing them to get even bigger while many of the smaller banks, who do not have access to the Federal Reserve teat, go out of business. Eventually some banks and businesses become so big that they achieve the status of "too big to fail".
Along the way, the big bankers, who know in advance that they are very likely to be bailed out, make all sorts of unwise decisions (investments, bad home loans, etc.), because the fees associated with these unwise decisions allow them to get even richer.
The solution to this problem is a return to free market principles (nearly every American living today is too young to remember when America operated on such principles). Specifically, we should (1) abolish the federal reserve, and (2) require the big bankers to take risks with their own damned money.