Quote:
Originally Posted by redpoint5
All markets are regulated. An "unregulated" market is just regulated by what people are willing to spend (supply and demand). Nothing stops people from charging the highest possible. We all do that. When I sell my labor to an employer, I demand the highest possible amount that they will accept. I'm regulated by the supply of people with my skill-set vs the demand for people with my skill-set. There is no max ceiling on prices just like there is no max ceiling on your income. We don't want artificial floor or ceiling limits placed on the value of things in a free economy. When you do that, unintended bad consequences occur.
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I would think that if market was not regulated, all banks would have failed circa 2007. Which would have then snowballed to the auto sector and definitely energy. Plus it would have spread world wide and cause a massive upheaval.
Which at hindsight would be good as we could rewrite everything. Yet we keep doing the same thing over and over again. Nothing has been fixed. As we approach the 10th year anniversary of the Great Recession, would we flailing the same banner? Again?
The idea of a free market is great as long as you accept the other half of the equation; failures should be left on their own. Every time the GOP runs out of money, Congress says ok to raise the ceiling. And a defence contractor seals another billion dollar deal. Nobody is willing to let failure happen. So we cannot say free market is practiced because there is always a safety net.