Nov
09

How do you monitor the “Free Market” to contain fraud?

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Question by Big Brodie: How do you monitor the “Free Market” to contain fraud?
The conservative argument is to dismantle the federal and state governments so that they don’t have to pay taxes or be held accountable for wrongful acts.

Let’s get hypothetical, and give them what they want a pure unregulated free market economic system. No Federal Reserve Bank, no Securities Exchange Commission, no bank examiners, no farm subsidies, no Small Business Administration with government backed grants and loans, no Federal Trade Commission or other government consumer protection agencies.

How do you keep larger corporations from crushing small businesses and family farms? Eventually there would be one super corporation controlling each major industry. More importantly that super corporation may not be an American company. Is it a “free market” when there are only four or five conglomerates that control all commerce?

How do you hold corporations responsible for their employees and the communities where they reside. Should we applaud these companies when they cast aside American workers, including middle and upper level professionals, in favor of foreign workers that are better educated and will work for far less? Remember there’s no government to interfere by created laws forcing them to hire American workers or impose pecuniary penalties to dissuade them from hiring foreign workers.

Consider this, slave labor means more profit so the walls, trenches, and moats on the border with Mexico have to come down.

Here is probably the most important issue what protection would consumers have if corporations or individuals, in a fit of greed, preyed upon those consumers fraudulently or commit environmental damage destroying the health of a community. As in the case of EMRON or the Love Canal in Western, NY. There would be no EPA to champion the cause of those who would be injured by environmental damage.

Another issue is what about indebtedness? Theoretically in a free market goods and services go for a certain price and if the consumer cannot afford it those goods and services will not sell until the price drops to a point where the consumer is willing to buy. Credit allows consumers to purchase goods and services at the inflated prices until the debt is eventually called and when the consumer can’t pay it you have a collapse of the whole house of cards. At that point the consumer can’t purchase at any price until the debt is satisfied.

Given these factors is a pure free market realistic? Intelligent answers instead of rants would be appreciated.

Best answer:

Answer by Roger M
wow way too long to read

Free markets work. Regulated markets don’t.

You will agree once you grow up and make more than $ 20 an hour.

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