Tag Archives: free market

Bernanke Claims We Need More Jobs

In an interview from the AP, Federal Reserve Chairman Bernanke cites jobs and hiring as the way to climb out of this “economic recession”. What Bernanke doesn’t mention in the very same interview is how he and his bankster friends are the reason jobs and hiring are in the toilet and can’t grow.

Bernanke exclaimed:

“Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established.”

Typical One Lesson fallacy. Bernanke’s comments were made with QE2 looming large in the background. Keynesian rhetoric at its finest. Artificial credit creation, deficit spending, and corporatism. $600 billion dollars in bond buyback which will certainly cripple the bond market. More artificial credit in the system means lower standard of living. This means a lack of savings, meaning no new jobs. Boom and bust cycle again.

Bernanke calls for job creation but never once mentions disgraceful pieces of legislation that makes job creation nearly impossible. Things like minimum wage, Sarbanes, the financial reforms brought under the patriot act, etc. All of these items greatly hinder job creation! How? They make it nearly impossible for entrepreneurs to function. How can jobs be created if bureaucrats constantly get in the way of business being started. Is it a wonder outsourcing is booming? Is it a wonder companies move offshores daily?

Minimum wage destroys jobs, it does not create jobs. It makes it illegal for people to work. It holds the entrepreneur hostage. It completely shuts down free market forces in gauging the job market. If someone is willing to do a job for $5.00/hr that is their choice. Forcing a business to employ at a set wage may push them over budget and thus eliminate the potential job completely. Beyond that and on the flip side it allows businesses to exploit workers. So long as the wage meets the “legal minimum” the crooked company is safe. No market forces determining wage. Employee A should be getting $14.00/hr but because of sick legislation as such, they are working for $8.00/hr. Choices? Quit or complain to the labor department.

Lastly, what good is a call for job creation if unemployment pay is so prevalent? Why would anyone work when they are paid to stay home? There is no incentive! People on unemployment can sit back, relax, and make money at the expense of everyone else. Who would choose to work when it might actually be more beneficial to stay home? In some cases (especially for younger people) they can make more money by staying home!

Bernanke probably read this dribble from a pretty little speech prepared for him. He is so far along on the road to serfdom that he can’t pull back the monster that is the US economy. The best thing to do is roll back all of this market interventionism and let the free market sort it out. Allow competition in the market through true capitalism, something we have never had, and watch in awe as our economy repairs itself.

Say No To Net Neutrality

I’m going to be brief as I am wrapped up in a few other matters but people need to listen up, please. Let’s define a few things quickly. The Internet is a network of computers and servers not a right you have. These servers are owned by private companies. You sign up by making a choice, best product/service for the best price you can find. In signing up you are a customer. You are exchanging cash for a product. You are now granted access to use a company’s services. Simple. Next.

Companies compete for your business. Prices fluctuate and new technology is constantly being developed to ensure you don’t take your business elsewhere. Company A wants you as a customer as much as Company B does. If company B finds a way to offer a better product for a better price they can entice you to switch service. Simple right? Next.

Competition is the life blood of any market. It is what allows for these developments. A company wants to make money, that’s the bottom line. This is all smooth and nice until big government sticks its nose in the business and prevents this from happening. Such is the case for the Internet. Let me explain.

Everyone is fearful that their ISP (Internet Service Provider) will come up with some sort of pricing structure that will block certain content unless a fee is paid. If you own the “Basic Internet Package” you might only be allowed to see approved websites 1-100. If there is a site not in that package you can’t view it. Likewise they may begin to charge for amounts of usage. Bandwidth caps and so on. Company A does this because they feel a pricing structure would increase profits and allow for more servers to be used more efficiently.

Company B does not feel this way. They feel if they increase the price all around for their service they will let you browse and do what you want. They have been offered big money by other private companies to block competition. TV Network XYZ offered a handsome reward if they blocked access to TV Network XYX. Company B decided against it as they felt it would only drive customers away to Company C. In this situation guess who will retain their current customer base, as well as bring on people who are fed up with Company A? That’s right, good ol’ company B!

You see market competition leaves room for new business and business models that respect the demands of the consumer. This is ideal! However we forgot about big government. You see people get scared and they assume government can protect them from bad business. They are wrong. Government is the threat to good business and the savior to bad business. Let’s look at energy companies. When was the last time you moved somewhere and sat down to compare different energy company prices? If you can’t remember it’s because you never did. Government indirectly grants monopolies to energy companies by area. They get kick backs and this means you either sign up and pay or go without power. No competition allowed! (There are other alternatives but these alternatives are not possible for everyone. Ie. solar, wind, etc)

So what does this say about the Internet? Well if government blocks private ISP’s from doing whatever it is they want to do, government will effectively destroy competition in the market. Government will have a say over which content is visible. Government will decide what fair prices are and what “fair use” is. Truly frightening. Today the new FCC rules call for a prohibition on “unreasonable discrimination” by Internet Service Providers, with the FCC’s regulators in charge of determining what counts as unreasonable. So one body of people who probably have no greater understanding of the Internet are going to decide how we can use our Internet. Sweet..

What about more regulation on what you can and can’t see? Not yet, but soon I promise. You see if we eliminate competition then if you don’t like how Company A is acting you have no choice to goto Company B because the government has regulated the internet. Company B will operate just like Company A. Site X is blocked because the government said so, not because Company A said so. FCC in control and these ISPs are nothing more than a subsidized government program that receives favor over another. This is called corporatism. The destruction of the free market.

We need the Internet, it is not a right of ours though. We are not entitled to another person’s labor. The Internet can’t be a right, it is a service and we must exchange currency for services. We need to have the right to choose if we aren’t happy as customers. If the government passes a “net neutrality” bill then you will lose. You will have no choice and be forced to accept whatever is given to you. I urge anyone who thinks they are doing the right thing by punishing big business for attempting to try an alternative structure to please consider the information above. Right now you can switch to a new company! New companies can start and offer newer and better service in the name of profits and customer service! You have options! If the government bans this then you will not. You will lose. We all lose. The government will be the only option.