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I wonder if free markets / capitalism hasn't changed. And, in fact, we are not 'sacrificing free market ideology to rescue free markets'.
Perhaps simply the playing field has changed - elevated. Rather than corporation versus corporation, we're now .. nation versus nation.
There are plenty of reasons in a Corporation why it might keep a division alive, even it if isn't making any money, running up a lot of debt, not paying it's bills. There are plenty of strategic and tactical reasons. Heck, Amazon.com didn't turn a profit for several years. This is very common, and there is good reason for it.
So why can't we do this at a national level? There are plenty of reasons why we want to bail out the Auto indrustry and keep it around until things get better. Economic, enviromental reasons. And they are all good.
But the fear is that we're sacrificing economic evolution in order to do so. But are we? I think the competition still exists. Except that it isn't GM Versus Toyota, it's the US versus China Versus Japan.
I think this is especially true because we can see a lot of the problems that have come about today are because China was doing a lot of currency manipulation, which let things get out of hand. It's hard to blame capitalism when you have foreign nations doing massive and perhaps irrational purchasing of your debt. They were creation huge disallocations of capital. No wonder things went awry.
Anyways, just a thought. I believe we still need to have a free market of sorts withiin the nations themselves. The majority of divisions of any corp do have to survive on their own merits, after all. Still, there is another way to look at this. A more global perspective.
Perhaps simply the playing field has changed - elevated. Rather than corporation versus corporation, we're now .. nation versus nation.
There are plenty of reasons in a Corporation why it might keep a division alive, even it if isn't making any money, running up a lot of debt, not paying it's bills. There are plenty of strategic and tactical reasons. Heck, Amazon.com didn't turn a profit for several years. This is very common, and there is good reason for it.
So why can't we do this at a national level? There are plenty of reasons why we want to bail out the Auto indrustry and keep it around until things get better. Economic, enviromental reasons. And they are all good.
But the fear is that we're sacrificing economic evolution in order to do so. But are we? I think the competition still exists. Except that it isn't GM Versus Toyota, it's the US versus China Versus Japan.
I think this is especially true because we can see a lot of the problems that have come about today are because China was doing a lot of currency manipulation, which let things get out of hand. It's hard to blame capitalism when you have foreign nations doing massive and perhaps irrational purchasing of your debt. They were creation huge disallocations of capital. No wonder things went awry.
Anyways, just a thought. I believe we still need to have a free market of sorts withiin the nations themselves. The majority of divisions of any corp do have to survive on their own merits, after all. Still, there is another way to look at this. A more global perspective.
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