Episode Two: Economic Freedom in America Today

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For years the United States has been a world leader in economic freedom. But runaway government spending and burdensome regulations have caused a decline in economic freedom in the United States. If our economic freedom continues to fall, how will it affect our quality of life?

Watch Episode One: Economic Freedom and Quality of Life at http://youtu.be/v1U1Jzdghjk

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[bmac6446]

It is the gov't and Fed's intervention into the market that causes boom and busts. We do not have free markets in the United States. We have a form of mercantilism known as corporatism where those close to the power structure are favored over those who are not. Most regulation of the economy involve things such as monopoly rights, licensing restrictions, rent controls, price controls and trade controls. Big business actually doesn't like free competition in the market.

[PissedFechtmeister]

He also employs tens of thousands of Americans. 

[Kyong Kim]

Wow, we're doing even worse than Canada? Worse than CANADA?!

[zaidster111]

Thanks for the long responses. Much appreciated.

[bmac6446]

Also, foreign producers and exporters must keep costs low to make up the losses by paying the tariff. They can raise the price on our markets for their goods or reduce wages for their workers. They usually do both. This limits how far our inflated/devalued dollars purchase and limits the ability of their workers from buying our exports. It also causes incentives for domestic manufacturing to outsource to foreigners to take advantage of the lower wages. Hope this helps.

[bmac6446]

Trade controls flat interfere with your and my ability to buy and sell with people in foreign countries. Things as import tariffs are used to give favoritism to domestic private interests and discourage our purchasing of imported goods. Pure cane sugar on the world market is very cheap. But not in the US thanks to the sugar lobby and corn lobby. Instead we are limited to corn syrup and beet sugar.

[bmac6446]

Secondly, price controls harm the market by interfering with the natural process of price discovery. Prices give information to entrepreneurs on how much to produce, at what cost, at what locations and a whole host of other valuable information to make proper economic calculations. Price controls lead to shortages and harm consumers. An example would be the "Price Gouging" laws in N. Jersey after the hurricane. Sure, lower gas prices but no gas! Also, rent controls are another example of this.

[bmac6446]

Through the tax code and regulatory agencies certain corporations/ private interests, who are already established, hinder the ability of new startups from competing in their sector of the market. This is the only way monopolies/oligopolies happen in the market. This lack of competition drives up prices and limits choices of consumers. The US has a full history of this. But, in the 1870's it began in earnest with the government sanctioned railroad cartels.

[zaidster111]

Ok, even if that were true, does it mean that they accessed other countries' resources by force? I don't think they are forcing the employees to work for them at a low wage.

And I just don't understand why none of these countries put even the slightest effort to remove the american "invaders", if it is to their advantage.

[TheSovietSuperpower]

And you wouldn't have been able to create the iPhone without the resources you got from Central Asia/ China and used wage slaves to assemble. Hong Kong, Singapore, US, UK, Australia, All of them have access to resources (by maritime shipping or ownership), so your standards of living are significantly higher thanks to the ACCESS to resources. None of these places would have achieved anything without massive resources coming to them, (via empire historically).

[zaidster111]

No, the reason why america enjoys a high living standard is because of respecting the principles of a free market.

It is innovative and productive (who else could make something like an iPhone).

They are at the center of the technological revolution

[zaidster111]

Hahaha, no you fool.

If the corporations left africa alone their people would be worse off. And anyways, i can give you another example, like brazil/mexico/russia. Or are these countries also being robbed by the evil corporations?