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View Diary: My Journey as a 9/11 Republican Turned Modern Progressive (263 comments)

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  •  It's not a contradiction... (3+ / 0-)
    Recommended by:
    efrenzy, pontechango, worldlotus

    ...to say that markets are the best mechanism for resource allocation, but that regulatory policy determines how the outcome of markets benefit whom.

    "free market" is a heuristic, by the way.

    there's no such thing as a free market.  but markets are a power that are very real.

    I've read Mosler's book by the way, doesn't quite have anything to do with what i've written though.

    There's a distinct difference between a planned economy and a market economy with regulatory and tax frameworks that reduce negative externalities and yield utilitarian outcomes.

    The underlying force in the latter is still the market.

    I said nothing of "free markets" in what I support currently.

    •  Externalities (0+ / 0-)

      That's a key point right there, that's sadly excluded from mainstream economics. Externalities are the disconcertingly dark side of market economics.

    •  The contradiction is (1+ / 0-)
      Recommended by:
      worldlotus

      if a market needs intervention then it doesn't allocate resources effectively.  The words 'planned economy' have a specific connotation that is often used to describe the dirty word socialism.  Our economy is planned to a point (though not effectively, imo) and isn't even close to the socialism that some would have us run screaming from.  In effect, the planning is in how monetary policy affects interest rates, our trade policies, and government spending decisions.

      Don't get me wrong, I have nothing against markets and they do have power.  But our 'planned' economy rewards some more handsomely than others by design.  Then there are those that are effectively priced out of the market, by design... You get the picture.

      As for Mosler, the link discusses how government spending and monetary policy affects inflation, interest rates and the 'borrowing' that was designed to profit the financial industry.   It also talks about how government spending is the first step in creating the market.  Go to page 34 under the heading; Federal Government Taxing and Spending Does Influence Distribution.

      I'm not trying to start a fight, just a discussion.

      Loyalty to petrified opinion never yet broke a chain or freed a human soul in this world--and never will. Mark Twain

      by whoknu on Wed Feb 06, 2013 at 05:38:13 PM PST

      [ Parent ]

      •  The government is merely an integral (0+ / 0-)

        player within the market.

        A market doesn't exclude government, it necessitates government even.

        And the way policies have been since Reagan have actually been redistributive UPWARDS! Because the government, the very nature of its regulatory power, enables the stability and trust in the market with its laws.

        There's a major distinction between "planned economy" and "market economy with associated regulations and taxation to offset inequalities".

        Of course the nature of a central bank is to steer and plan the economy in a way, but the underlying mechanism generally tends to be the free enterprise market system.

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