|
Who has an incentive for short run profit with long term bankruptcy? Everyone. Business conditions change, especially with the silly fine tuning we experinced about a decade ago...but name a firm that has long term bankruptcy as part of it's business plan. The creative destruction of a free market is what builds strong reliable companies. Do you mean if an industry has some firms exiting it, they should be subsidised, or it is market failure? Such a system which you wrongly call survival of the fittest maximises the best use of resources, therefore utility/wellbeing. Unless you propose the 20th century solution of industry welfare. Recent corporate failures have given me a bit of insight; Don't put your eggs in one basket Don't buy into cockamamie outfits that have been set up this morning, who K Packer told they were "fucking high" Maybe I should buy commercial bonds instead of shares But you seem to misunderstand the idea even of the classical microeconomic model taught to Saul Eslake, there needs to be some form of authority to enforce the rules of the game, otherwise the game can't happen and we all lose. Existance of Government is key to a the classical free market model, as well as minarchy and objectivism. That's the role of the Government in a free society - minimise violent crime, theft fraud and external threats. Strawman isn't an anarchist, but it's shallow to say that some form of anarchic Government couldn't handle it. One example of where privatisation has been in a failure - in a nation to where it has largely been a success. Tell me, does the British Government drain resources and stifle competition through exorbitant taxes and regulation? What makes you think that these tragedies wouldn't have occured if it remained in Government hands? If each welfare recipient would recieve many times more the minimum wage if welfare payments were directly given to them, and there was no admin, what does it tell you about Government bureacracy? How would this have made British railways safer?
| 
