The Daily Paul has been archived. Please see the continuation of the Daily Paul at Popular

Thank you for a great ride, and for 8 years of support!

Comment: On your last point about big being inefficient ...

(See in situ)

In reply to comment: this is an important subject (see in situ)

On your last point about big being inefficient ...

... some economists have identified exactly WHY big government controlling an economy can never work out.

It's called the lack of a "pricing mechanism." When the Soviet Union had bread lines, it was because the politburo had no idea what a loaf of bread should cost, what distribution should cost, what farming costs should be, etc.

In American health care today, the federal government has dominated health care PRICING for at least 30 years. What happens is that some bureaucrat decides that "Procedure X" should only cost $700 instead of $1,000. How do they know? They DO NOT KNOW. They are pulling these numbers out of their a** -- just like the Soviets did. But it has a HUGE effect because doctors and hospitals operate in the real world, not fantasyland. So, they have to drive the costs up for everyone else to make up for what they lose to Medicare bureaucrats.

It is the lack of pricing mechanism that makes it literally IMPOSSIBLE for government to EVER be efficient. Even with smart people in government (which is rare), or smart business people in government (even more rare), and even the best of intentions (almost non-existent in government), it can STILL never be efficient.

When it comes to BIG business, the same becomes true, but not as dramatic. There is still a pricing mechanism in big business -- but NOT WHEN THEY GET MONOPOLIES AND OLIGOPOLIES.

Do you pay what you "should" be paying for phone service? How do you know? We have NO IDEA how cheap or great phones could be in a FREE MARKET because the current system was GRANTED BY GOVERNMENT to a few companies.

So, these big companies, in order to KEEP OUT COMPETITION that would be able to do it better and cheaper, MUST resort to government privilege in order to survive. It is up to the rest of us to put a stop to it.

One last point -- the worst situation is when big business gets exclusive contracts with the government. In those cases, you can be sure that insider's pockets get lined with bloated payments, such as the well-known $8,000 hammer sold to the Air Force.

It is CRONYISM that is the problem, and not capitalism.