So much for the Free Market

Indiana tax payers will subsidize Carrier with 7 million in tax breaks in exchange for keeping 700-800 jobs in the state, it is unknown if the remaining 1000+ jobs will continue to move abroad or not.

It seems that most Americans do not understand how Capitalism works. The government is supposed to stay out of the “free market”, not even to bail your sorry @$& if your company fails or one loses a job. These aren’t my rules, but if you studied economics 101, then you understand the laissez-faire principles. Businesses are suppose to compete and be profitable by keeping costs low and sell quality goods at the lowest price. That means cheap labor by either replacing humans with machines or hiring labor at a cheaper wage. If not, they will be priced out of the market by other competitors. Who else competes? Customers! Yes, sometimes customers bid and compete for high-demand goods (i.e ebay or buying a home); and employees also compete, by convincing employers that they can provide valued services at the best wage. If someone else can do your job for a lower price, then guess what, you weren’t competitive and free market principles dictate that you keep looking for another job or leave the market all together. These are all components of the “free market” that Conservatives rally for, but seem to only to remember one of these branches.

However, when White working class men realize that they are not competitive in the market, its time for a government handout (corporate welfare)! Unfortunately, the working class won’t benefit from these deals. Carrier is not obliged to hire union workers or pay the same wages/benefits that will put decent food on the table, nor keep these jobs on U.S soil for more than a year. However, this is politics, so a very good symbolic move for Trump. Nonetheless, my post is about the free market and the State staying out of the affairs of the private sector. Let’s take the fight for $15 minimum wage, that many conservative-leaning naysayers feel that these low-skilled, low wage jobs are for teens and college students for entry level positions in the workforce and thus raising wages could actually cause more unemployment as business will cut jobs.

When food workers picket for a higher minimum wage, they are classified as “lazy” low-skilled (predominantly shown in the media as Black, Brown, and female) workers that need to “get better jobs” instead of flipping burgers. Hence, this year’s election was all about poor and working class men who have seen manufacturing and mining jobs disappear as long as 30 years ago! Why didn’t Bill O’Reilly or Tucker Carlson also argue that these low skilled (mainly portrayed as male and White) workers in the manufacturing industry should “improve their skill-set” to get “better jobs” instead of asking for the government to intervene? This is a true capitalist perspective, which in no doubt would leave many people very vulnerable. However, many Americans are not advocating for government welfare policies to benefit the bottom 70% of America. Instead, mass society cheers and claps at the mention of more corporate welfare that may eventually (hopefully) trickle-down. Folks, something will trickle-down from the top 1% but it won’t be the loose change from their pockets, don’t you smell what’s going on here?

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9 thoughts on “So much for the Free Market

  1. I find it ironic that people are complaining about the Carrier deal, yet no one complained when AIG was bailed out, or GM was taken over by the government. The only difference between them are the number of jobs that would have been lost.

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    1. Oh, people complained in my neck of the woods about the bank bailouts in 2009. I’m still complaining about them,because it’s the reason why we have so much debt and there’s a push for austerity.

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  2. “Special Interest has been a part of this system from day one! The founding fathers CHOSE to keep slavery when they formed the Constitution and the Bill of Rights, because those participants owning slaves expressed a financial benefit from this institution brought to this continent from Western Europe. This element of Democracy/Capitalism has been there from its very inception. Government is an “Inefficiency” of free market principles, and thus caters to its subjugated role behind the real power of wealth and corruption?

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    1. Yep, but the real inefficiency isn’t the State, it’s the markets. The boom and bust cycles which seem to get worse with every crash and consistently need the State to “cover” bad debts (publicized debts and privatize the profits) to keep a ft ing system whole.

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  3. Spot on. The economy, like healthcare, is broken in many places. But the beneficiaries of that brokenness won’t be taking to the streets to give up the benefits. Meanwhile, real wage workers buy cheaper goods to stretch their stagnant incomes in the quest to consume, driven by continuous ubiquitous marketing – thereby driving prices down to the cheapest labor. It’s a crazy world we inhabit!

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    1. You basically just described the “race to the bottom” keeping products/services cheap for mass consumption. Thus, businesses are always looking to cut corners and not pay higher wages or benefits. Thus in turn, keeping purchasing power low. The middle class is an illusion, because of credit. Since loans are easy to get in the U.S especially during the boom after 1997, everyone had the illusion of being middle class and being able to buy things they otherwise couldn’t afford.

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  4. I often wonder if anyone realizes that we cannot keep consuming indefinitely. But how can it be stopped (even by me, in my own household?!?) I think of the trash, the industrial and personal pollution in the water, air and ground and wonder “How long do we really have?” I fear it will be frog in boiling pot type scenario, and my grandchildren will be the ones walking around with white masks and fretting about how to clean the water to drink.

    Economics. Nationalism. Immigration. Consumerism. Such a complex world we inhabit, yet I think people have changed little. There are no easy answers any more, as there are so many of us.

    Hope your new move is going well, btw šŸ™‚

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