Monday, July 27, 2009
a free-market philosophy
This was initially written on a flight from Oslo, Norway to Aalesund, Norway. The pen held together this time....
In the July 18th, 2009 issue of The Economist Magazine, the article titled: What went wrong with economics: And how the discipline should change to avoid mistakes of the past (I could not find the name of who wrote it), in describing why theories on economics prior to the economic collapse were so much followed with blind faith in their supposed perfection, the purist economic model is boiled down to as such, "supply must always equal demand.". As simple of an economic idea as this is and as logical as it sounds, the rampancy of this idea has resulted in a false demand stemming from the deception and effectiveness of advertising and banking operations (at least the banking operations of the recent past which are and will be continue to be reformed to squash similar oversights and voluntary ignorance to negative effects of concentrating more energy on feeble attempts to avoid any minuscule evidence of inflation). Although I am far from an economist it seems like with the growth of an economy, small, organic inflation could be a natural part of its growth. There is a great chance that I am drastically misinforming myself on this.
Back to supply and demand: the supply creates the demand. with an overabundance of commodities of all kinds flooding the market (which some economists may say is a sign of a healthy market, creating momentary or seemingly healthy competition resulting in affordable prices for the consumer), this flood creates fabricated demands. This "healthy" competition and designed product obsolescence deceives the general public into thinking that although they were not previously demanding the product, the price is so good that they should buy it, almost for that reason alone. Demand is justified by price, influenced by high surplus and long term unhealthy competition, all of this action is encouraged and ultimately made possible by a credit market that has been based on debt and prolonged reimbursement grounded in variable interest loans. To allow the market to regulate itself may work for the local corner grocery store, but as a system as a whole that is based on accumulation, greed and opportunism, it is not at all surprising that an unregulated marked would drive itself into the ground. This system which fell into the depths of hiding behind a smile in making the individual consumer feel that they are being offered a loan of which they did not believe while walking through the doors of that trusted financial establishment that they at all were eligible for, let alone demanded. This being another example of surplus, in this case capital, influencing, deceiving, and fabricating a purely illusionistic based consumer demand. By deceiving the customer into thinking/feeling that by offering them a loan higher than was previously conceived and needed, thus improving their quality of life, this being a blattant lie and it is my belief that most of the individuals offering such unexpected and seemingly generous loans knew the deception they were laying down in fine print and to the eyes of those consumers who, like the purist economists found a subconscious faith in the good ol' American brand of unregulated free-market supply equals demand capitalism. The banker probably knew the very real possible long-term negative effets to these individuals. But as mentioned earlier, the opportunistic aspect of the system seemed to justify to potential decent human beings wearing banking costumes that their tactics were not only widespread and that they were simply going with the normal flow of traffic, doing 90 mph in a 65 zone so-to-speak, but that the perfection of self regulating overall free-market economy, will keep everyone's pants up. This has resulted in whore houses in Germany offering, all you can get, for $111.00 per hour and senior citizen discounts and shuttle bus services as as way to keep their customers pants down, as was reported in Time magazine, July 27, 2009, article titled, Hard Times Hit the Sex Trade, From Bangkok to Berlin, The global downturn is hurting brothels - and their workers, by William Lee Adams.
Economist Magazine, What Went Wrong with Economics.
Time Magazine, Hard Times Hit the Sex Trade.