4 ms·
The whole reason government intervention into the economy was introduced (creating your "crony capitalism") was that falling profit margins meant the only way t
by xtian 6y ago
The whole reason government intervention into the economy was introduced (creating your "crony capitalism") was that falling profit margins meant the only way to maintain or grow overall profit levels was to increase production, which led to periodic overproduction and market crises. This happened repeatedly and created (at the very least) massive amounts of unemployment and waste. Nothing intrinsic about free market competition or pursuit of private profit checked or balanced it.
- hajile 6y agoThe result was the creation of the Federal Reserve. All of the biggest market crisis in US history (either by total or percentage) have happened under the watch of the Fed. In fact, most of them could not have happened without express intervention by the Fed incentivizing bad behavior. If anything, it seems like crashes are inevitable and government intervention has simply made the crashes bigger and longer-lasting.
- xtian 6y agoSo if crises happened both before and after efforts at intervention it almost seems like the tendency is endemic to capitalism itself. Which is one of the many things Marx was right about.