Why Free Market Capitalism FailsIn this essay, I expose the flaws in the two mechanisms that are supposed to power the free market: Adam Smith's invisible hand and trickle down economics. The notion of the invisible hand holds that in a free marketplace, the buyer's self-interest will tend to drive the price down, while the seller's self-interest will tend to drive the price up, so that both parties' self-interest will naturally cause the price to settle on an amount that both find reasonable. Trickle-down economics maintains that the rich are the ones who start and expand businesses and hire employees, so the laws should favor them increasing their wealth as much as possible so they can hire more people, thus growing the economy.These concepts look good on paper, but the best way to evaluate any idea is to see how it works in practice. Let's start by analyzing nationa
Essay: Why Creating Jobs is the Wrong GoalWe're all job creators
I recently saw a clip of Peter Schiff interviewing an Occupy Wall Street protester. Schiff asked him how many jobs he creates, and unfortunately, the protester wasn't prepared for this question. (Although it was being filmed by Drew Carey's libertarian group called Reason TV, so if anybody did raise good points against him, we'd never see it anyway.)Contrary to Schiff's shortsighted view of the economy, common people do create jobs. We hire orthodontists, doctors, lawyers, mechanics, plumbers, electricians, HVAC technicians, exterminators, and many other professionals. Their careers directly depend on enough working class people being able to afford to hire them.Less directly but just as importantly, we hire businesses (and the factories and transportation companies which supply those businesses) whenever we patronize them. If they lose consumer demand (like they would if their
A Real MasterpieceLook, a quote I stole!In black and white type!This took my heart and soul,It deserves the hype!