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Mo-

Illustration of why socialism doesn't work

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v good point about university.

The problem with free market education is that wealthier people have greater access to it. There is then a danger that those who are less well off will be left in the dust when it comes to competing in the market place. 

 

(The son of a successful CEO may get the best education in the world in becoming a CEO just by talking to his dad. This will give him a large lead when it comes to competing for CEO positions)

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12 hours ago, superman said:

v good point about university.

The problem with free market education is that wealthier people have greater access to it. There is then a danger that those who are less well off will be left in the dust when it comes to competing in the market place. 

 

(The son of a successful CEO may get the best education in the world in becoming a CEO just by talking to his dad. This will give him a large lead when it comes to competing for CEO positions)

 

This already technically occurs to an extent. The thing with university places supply is extremely elastic and educational investment is already becoming a thing where people give student loans and apply financial analysis to them in order to supply a credit rating. Usually though people are only willing to finance people who're attending strong universities because they have the lowest financial risk, so inevitably universities with bad career prospects will simply cease to exist (University of Greenwich and Kingston for example). 

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1 hour ago, superman said:

How does policing work in a free market economy. Surely the rise of private security companies is a bad idea?

 

There are some aspects of the economy that don't need to be laissez faire (police, army, etc)

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3 hours ago, Mo- said:

 

There are some aspects of the economy that don't need to be laissez faire (police, army, etc)

treason! communist!!

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3 hours ago, Mo- said:

 

There are some aspects of the economy that don't need to be laissez faire (police, army, etc)

 

the issue here is that it becomes somewhat arbitrary what can and can't be under government control. For instance do we put healthcare under government control like we do with security (ie police). Also you would need some level of taxation for the govt to fund roads, army etc

 

what role does the govt play in a free market economy? And are they part of the economy or in charge of it?

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38 minutes ago, Haku said:

treason! communist!!

Communism can work very well and is an excellent system... just not for humans. Communism is the system enlisted by colonies of bees or ants in order to make their hives operate at great efficiency, and I think it works really well for them. Every bee just gets on with the specialisation nature intended for it. People on the other hand are ambitious and have self interests. I don't really think communism could ever work out for people like it does for other animals. 

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3 hours ago, superman said:

 

the issue here is that it becomes somewhat arbitrary what can and can't be under government control. For instance do we put healthcare under government control like we do with security (ie police). Also you would need some level of taxation for the govt to fund roads, army etc

 

what role does the govt play in a free market economy? And are they part of the economy or in charge of it?

 

This questions goes beyond economics and more towards politics and the make up of a society. Each society has its own social contract defined by its culture whether enshrined in law or otherwise, but we have the capacity to discern between which systems have historically been more beneficial for mankind. People of course have their own definitions of beneficial and best, but from an economical viewpoint the free market has always been the best solution to nearly all economic issues. 

 

I read a study (forgot which one) about how in societies with ineffective government protection rackets thrive, because by default, due to the notion of a monopoly on violence not existing, violence also becomes part of the market. The result is people pay racketeers for protection (mafia or gangs) and they do in fact protect people from other racketeers because they have a financial interest. This same arrangement technically exists between people and governments in stable countries except the government has successfully monopolised the racket and call it taxes instead of extortion. 

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