Friday, July 15, 2011
Why don't people understand that the free market actually supports the middle class?
Time after time I hear people saying the conservative economic ideology (free market) goes against the middle class and working families. ANY intervention in the free market decreases production, standard of living, and employment. Regulating companies decreases competition, therefore creates monopolies and companies that no longer serve the consumer. The free market works because companies serve the consumer. If they don't comply to the whims of the consumer, they fail and better companies replace them. The argument that the rich keep getting richer when the poor get poorer doesn't work. Wealth is not constant; the rich create wealth. When the rich get richer, they create jobs and increase the standard of living of the middle class and poor people. The liberal media constantly demonizes businesses when these businesses create the society they live in. We know that sometimes big business is damaging to economy because they buyout smaller, more efficient businesses. This is directly caused by interventionist policies that lower competition and are supported by lobbyists from these big companies. If you listen to the news you will hear about Wall Street supporting many new regulations; this is because these regulations decrease competition and make it easier for big business to keep their companies, even if they are not serving the consumer efficiently. To both Democrats and Republicans, you need to understand a pure free market will work the best to solve problems in society. You can argue about social issues but you should be united in economics.
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