The Age of China

[imotion s14]

Originally Posted by gearhead55

Your sarcasm isn't funny or helpful.

Neither is your head-in-the-sand optimism that government can cure all economic ills if we just pass a law.

Regulation is absolutely necessary for a stable economy,

You can say the Soviet economy was stable in it's stagnation.

its just a matter of balance.

And who exactly gets to decide this arbitrary balance?

Obviously there will always be economic cycles, but big boom and busts should be avoided.

First you say we can achieve economic stability, now your admitting the boom and bust cycles is unavoidable.

How do you think the housing boom got started? Where did all that credit come from? it surely wasn't from American savings. Had nothing at all to do with the Fed lowering interest rates to 1% in response to the internet bubble. And the minute they start raising rates the bubble starts to burst. That has nothing to do with it at all.

And no, "the soviet economy" never had 100% regulation. No economy has or ever has had 100% regulation.

There was no private ownership of means of production, no capital markets, no entrepreneurs directing capital. The central planners of the Soviet Union had 100% control of the "output" of the Soviet economy.

Its easy to think in the black and white terms of "no regulation is good, regulation is bad", but thats not the way the world works.

You're the only one thinking in terms of black and white. In your black and white world the government has perfect information and thus can stop boom and bust cycle because they can predict the future and apply regulations with accurate foresight.

There will always be a give and take, and dogmatic views about the need for government involvement solve absolutely nothing. If people were more realistic the conversation would be much more productive.

I'm not the one who has a dogmatic view that government sticking it's nose into the market fixes everything. The economy is too dynamic for any 1 smart man or 100 really smart men. If we could do all that then we wouldn't need a market as we'd have a 100% efficient economy and can direct resource without making mistakes.