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It seems to me to be an economically illiterate statement that overly conflates profit motive, capitalism, and competition. But this does come from the pen of P
by jnordwick 10y ago
It seems to me to be an economically illiterate statement that overly conflates profit motive, capitalism, and competition. But this does come from the pen of President Obama, so my hopes aren't that high.
I seriously don't see the US as having a problem with too much competition, profit motive, or capitalism. Our biggest problems are in our most highly regulated industries. And as regulation grows regulatory capture becomes a far larger problem. If anything, I think we are suffering from a terrible lack of capitalism.
- matt4077 10y agoThe current crisis was mostly caused by real estate and the financial industry. And while there's a lot of regulation in the financial industry, I doubt anybody argues that lehman brothers was forced into it's business by oppressive regulation. Concerning other industries, those most regulated are those that tend to natural monopolies such as energy or telecommunications. Nobody can seriously advocate for a return of the old telephony monopoly, so I'd say these industries suffer despite regulation, not because of iy.