**PETER SCHIFF on being a LIBERTARIAN** IC Dec. 16, 2009.wmv

[Shrunkenhead61]

Anyone else notice that around WW2 that things started becoming bad? And now in 1980's Corporatism was born? A soft fascism?

Did Hitler or something move from Germany to here?

[TheCrypticPie]

"Prices go down and quality goes up" with one exception: Monopolies. That's one of my main fears as a Libertarian. I can't justify regulation to eliminate monopolies but I recognize that they aren't a good thing and could potentially challenge the minimal government I'd like.

[jsmetona12]

@TheCrypticPie monopolies can't exist in a true free market.

[Shrunkenhead61]

@jsmetona12 Sorry to chime in. The reason is because when they start getting expensive, consumers will say "This isn't worth the price." and go to another guy, right? I'm asking why?

This is important thing to know that monopolies can't happen in free market. Anyone else hate corporatism?

[FATToney12]

@TheCrypticPie The only monopolies that exist in a free market are natural monopolies.

[Tracywithafacey]

@TheCrypticPie As someone else has pointed out, you cannot have a monopoly in a true free market. And if you did, then the company that is the monopoly would be incredible as far as customer value etc were concerned, because it could have only have become a monopoly by benefiting the customer most

[klaptongroovemaster]

"Why is the cost of making a phone call going down, while the cost of mailing a letter keeps going up?"

GASOLINE, maybe? The phone doesn't use any.

Just throwing that out there. I generally agree with the premise that government screws up everything they ever try to do. But this was a poor choice of an example.

[greenalkalinerain]

Intelligent man, Peter Schiff. If I were American I might vote for him

[0rangekat]

I agree it can be seen with cell phones flat screen tvs lasik surgery etc/ most items but some services are less open to competition than others because of the lack of companies that can install the infrastructure also many large markets are not very competitive. With cable service for example my only choices are comcast or AT&T whereas my choice for most products (eggs, TVs, Cell phones) is much more competitive. I agree that competition lowers price and increases quality.

[maracom]

At least cabinet positions are confirmed by the Congress as a nominal check...

[roseagain2]

Awesome!

[0rangekat]

I think the price of mail is going up because more people are using email so it gets more expensive to mail fewer letters because it is reducing some of the economies of scale that existed when people were mailing a lot more. Also the government actually made a law under Bush that the cost of postage can't go up faster than inflation...

FedEx UPS should keep USPS in check ..

I think phonecalls are becoming cheaper because of fiberoptics. ....

I think he could have used a better example!

[0rangekat]

lol I like the way people give negative votes but don't explain why? if you have a constructive correction please set me straight. nothing is accomplished by dismissing people who don't smile and nod at everything this guy says.

[jupiterjason]

This is a fine example, & there are many others.

While it's true that people are now sending fewer letters, the price of postage was going up before email.

FedEx can't "keep USPS in check"- 1)USPS has a monopoly on mail delivery (outside of urgent/express mail & packages), & 2) USPS operates at a loss of billions $ a year. It's hard to compete against someone who has no risk of going out of business.

[jupiterjason]

Phonecalls are becoming cheaper because of the free market- competition lowers prices & increases quality.

Companies are driven to use emerging technologies to create a better product to compete with other companies for your business. As the companies use these technologies more efficiently, and as supplies increase to meet demand, prices decrease.

This can be seen in cell phones, flat screen tv's, lasik surgery, plastic surgery, contact lenses, dvd players, etc.

[MMAGRO1]

The cost of postage does not fully cover the cost from USPS to deliever the mail. The rest of it comes from taxes paid by taxpayers. USPS has a monopoly on delivering mail, so UPS and Fedex cannot compete. And even if the could compete by delivering mail, they still could not compete because USPS gets additional funding from taxpayers to keep it up and running, unlike fedex and UPS. So USPS will always have the advantage.

[MajerussGut]

Lysander Spooner and the American Letter Mail Company. He was delivered mail at lower prices than USPS, but the government deemed his company illegal. We would certainly have a much more efficient, lower priced mail delivery system with several competing companies if not for the government granting USPS a territorial monopoly. USPS would still be in business because we're forced to pay for them through taxes, but nobody would use them anymore because we would finally realize how badly they suck.