Class Warfare Blog

July 14, 2012

Let the Markets Decide . . . Yeah, Right

In this morning’s paper I read:

Visa Inc., MasterCard Inc. and banks that issue their credit cards have agreed to a $7.25 billion settlement with U.S. retailers in a lawsuit over the fixing of credit and debit card fees in what could be the largest antitrust settlement in U.S. history.” (Reuters)

I read a number of such articles in the paper every morning: banks being fined for fixing rates, mortgage companies being fined for violating review rules, pharmaceutical companies being fined for pushing drugs for treatments not authorized, banks fixing rates on trillion dollar deals, health insurance companies issuing refunds because of illegal profits, nuclear power companies shirking their duties, airlines promulgating new fees for everything from in-flight movies to checked bags, insider trading by a hedge fund manager making millions via illegal stock tips, mining companies ignoring federal safety violation citations . . . . I could go on but I think you get the point.

“Yes, there is a cost to such regulations, but the benefits outweigh the costs.
States which dump such regulations overboard to “attract businesses” do so at their peril.”

The “markets” are simply collections of companies doing business. The companies, after years and years of deregulation, are out of control, having no moral compass and little moral sense. And we are to leave our livelihoods in their incapable hands? WTF?

Conservatives often fling around names from Germany’s Third Reich: Hitler, Gestapo, Holocaust, etc. One invention of the Third Reich that does actually apply here is “the Big Lie.” If you tell a lie, even a really big one, and say it over and over, people may begin to believe it.

Giving “markets” control over our lives is such a big lie. They prove on a daily basis that they cannot be trusted and need to be regulated strongly. Yes, there is a cost to such regulations, but the benefits outweigh the costs. States which dump such regulations overboard to “attract businesses” do so at their peril.

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1 Comment »

  1. You are right on the mark. “Markets” do not self regulate themselves. The banking industry is a great example as they prove every day that they can’t control themselves. Great post!

    Like

    Comment by thejumbledmind — July 14, 2012 @ 10:26 am | Reply


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