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A Libertarian Society

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RonPaulLol posted on Sat, May 28 2011 7:25 AM

A common argument i hear among libertarians is that in a pure free market, individuals will be able to pay for private healthcare/no welfare will be needed etc. because everyone will be richer. The wages of the bottom rung of society will be higher.

So how does a free market facilitate this? In a capitalist society, as inequality increases, why will the capital owners simply not exploit the working class and supress wages?

Secondly, an argument i often hear is that the reason 'big business' exists is because of government protection for these corporations through subsidies and other forms of 'crony capitalism'. In a free market, large exploitative corporations wouldnt exist in the first place and probably would never form. This sounds too utopian for me, without anti-trust laws, large monopolies and oligopolies are sure to form because they take advantage of barriers to entry, particularly natural monopolies. What would be a free market counter to this?

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So there is currently a shortage in charitable blood donations, even though it involves no opportunity cost (i.e. me giving a pint of blood requires no loss,because i can regain that blood), yet we seem to expect that there will enough charitable donations to go round for millions of people who require financial assistance?

some operations cost in excess of $100,000, possibly millions and you expect for every one of these there will be someone who sells their possessions to give these individuals the money? if people cant be bothered to donate blood, why will they be bothered to donate collectively billions of dollars?

if there are these charitable people, then where are they to provide assistance to the 50 million americans without health insurance or to the millions who are homeless now?

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z1235 replied on Mon, May 30 2011 2:24 PM

RonPaulLol:

So there is currently a shortage in charitable blood donations,...

Do I smell a Blood Tax? Brilliant!

 

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if there are these charitable people, then where are they to provide assistance to the 50 million americans without health insurance or to the millions who are homeless now?

There's plenty of people- there are doctors and pharmacists that provide completely free services to all their family and friends(which can easily be 100+ people that the doctor does this for, of course with mandatory insurance on the horizon those people will have to spend money when they didn't have to before). 

You don't think that if people were allowed to keep more of their income instead of having it taxed away- there wouldn't be more charity? You don't think that perhaps if the value of the currency wasn't dropping every year the heavy burden the poor carry wouldn't be eased? You don't think that there are reasons that healthcare costs are so high in the first place? Or that there are reasons that rent is so high and forces homelessness? 

Are you doing something about the fact that there is a shortage in charitable blood donations? Perhaps you could even offer them something so that they rather donate blood than sit around at home?

Is stealing really your only solution to life's problems? So far what I'm hearing is "The only way I can be safe is if I steal from that guy because I need it who cares about him."

Give me some solutions that don't involve stealing someone else's money! 

 

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Well according to RonPaulLol's logic, we should have a mandatory blood-giving day where we are forced by the State to donate blood, even if it is against our will.  The greater good and all that jazz.

"And it may be said with strict accuracy, that the taste a man may show for absolute government bears an exact ratio to the contempt he may profess for his countrymen." - de Tocqueville
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RonPaulLol:
So there is currently a shortage in charitable blood donations, even though it involves no opportunity cost (i.e. me giving a pint of blood requires no loss,because i can regain that blood),

Can you explain what you mean by "shortage" in the above? Otherwise, donating blood certainly does involve an opportunity cost, namely all the things I could be doing instead of giving blood. You seem to misunderstand the concept of opportunity cost, unfortunately.

RonPaulLol:
yet we seem to expect that there will enough charitable donations to go round for millions of people who require financial assistance?

See, that's just it - how much is "enough"? There's no objective answer to that question, just as there's no answer to the question "How many people actually require financial assistance?"

RonPaulLol:
some operations cost in excess of $100,000, possibly millions and you expect for every one of these there will be someone who sells their possessions to give these individuals the money?

Are you implicitly arguing that people are entitled to any and all operations that they want to have, regardless of cost? If so, why?

Speaking only for myself, I would expect people to do what they want with their money, as long as they don't hurt me in the process. Failing or refusing to give me charitable donations (directly or indirectly) doesn't hurt me, even if I'm broke.

RonPaulLol:
if people cant be bothered to donate blood, why will they be bothered to donate collectively billions of dollars?

I'd actually argue that most people are more willing to donate dollars than blood. And people already collectively donate billions of dollars to charity - over $300 billion in the US during 2009 alone.

RonPaulLol:
if there are these charitable people, then where are they to provide assistance to the 50 million americans without health insurance or to the millions who are homeless now?

Perhaps they have a different idea of who's "needy" and who isn't. Of course, that's the real crux of your problem - the notion that other people have different opinions on this and other issues. It's all about imposing your preferences on the rest of society by force. Whoever disagrees with you is Stupid, if not downright Evil, and You Know Better Than They Do.

The keyboard is mightier than the gun.

Non parit potestas ipsius auctoritatem.

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Rcder:
I think the problem that RonPauLoL and other welfarists wish to overcome is uncertainty in life.  And while this is a noble goal, it is, unfortunately, impossible.

Well said, Rcder. But since it's impossible, I for one hardly consider it to be a noble goal.

The keyboard is mightier than the gun.

Non parit potestas ipsius auctoritatem.

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So there is currently a shortage in charitable blood donations, even though it involves no opportunity cost (i.e. me giving a pint of blood requires no loss,because i can regain that blood), yet we seem to expect that there will enough charitable donations to go round for millions of people who require financial assistance?

some operations cost in excess of $100,000, possibly millions and you expect for every one of these there will be someone who sells their possessions to give these individuals the money? if people cant be bothered to donate blood, why will they be bothered to donate collectively billions of dollars?

if there are these charitable people, then where are they to provide assistance to the 50 million americans without health insurance or to the millions who are homeless now?

As I pointed out earlier, you people don't quite seem to understand how market pricing works. The reason that an operation costs so much is that society does not have enough resources to produce as many of them as people need. The very function of prices is to make some people unable to afford certain goods, because we do not have enough of them. If 1000 people need an operation, but society can only produce 800 operations, then they will be priced at a level where 200 people can't afford one. Pricing is a mechanism to ration resources that are scarce. It's not like the price of a good is some inherent feature of that good and the problem is how to come up with enough money.

Declaring operations "free" through the government does not magically make more operations available. If anything, a nationalized system is going to make them more scarce. If 200 people can't afford health care in a free market, then 200 people still can't get health care after we took away the need to pay for it. The only difference is that now people don't die because they lack money but because they are too far back on the waiting list or drew the wrong number. There is simply no way to get around the unpleasant fact that we do not have enough resources for everyone to get everything they want. We need to ration scarcity somehow.

But the market is the best way to allocate scarce resources. Both history and economic theory have shown that free markets are the best system to make resources abundant. Once we do have enough productivity, operations will naturally be affordable because if there are enough operations to go around then they will be priced so that everyone can afford one. So you see, the way to make health care affordable is not to take more money from the rich, but to let higher productivity raise real wages to the point where everyone can afford operations.

"They all look upon progressing material improvement as upon a self-acting process." - Ludwig von Mises
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Clayton replied on Tue, May 31 2011 12:45 AM

If the Underpants Gnomes were statists:

 

1. Found a government

2. ????

3. Universal happiness!

 

Clayton -

http://voluntaryistreader.wordpress.com
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Clayton replied on Tue, May 31 2011 12:50 AM

Thomas Sowell on the function of prices (Basic Economics):

Many people see prices as simply obstacles to their getting the things they want. Those who would like to live in a beach-front home, for example, may abandon such plans when they discover how expensive beach-front property is. But high prices are not the reason we cannot all live on the beach front. On the contrary, the inherent reality is that there are not nearly enough beach front homes to go around and prices simply convey that underlying reality. When many people bid for a relatively few homes, those homes become very expensive becuase of limited supply. But it is not the prices that cause the scarcity, which would exist whatever other economic or social arrangements might be used instead of prices.

Blood is under-supplied because the price of blood is too low. A full-fledged blood donation market would bring the demand for blood into balance with the supply of blood.

Clayton -

http://voluntaryistreader.wordpress.com
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RonPaulLol:
inequality

Diversity!

"They all look upon progressing material improvement as upon a self-acting process." - Ludwig von Mises
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