oicur12.again, we do not have a free market system of capitalism. How can we when the most basic unit of the economy (money) is centrally planned & deliberately debased via the Central Banking system?
If we had a free market system, mistakes would be punished, and companies that made bad choices would be allowed to fail. How many banks have failed as a result of the GFC without bondholder protection? How many companies have been allowed to fail without a bailout for the bondholders? Where is the "market discipline" for the large institutional investors who made grave errors of judgement? The taxpayer has taken the burden of the entire system. Where are the write-off's of bad debts and the haircuts for the bond holders? No, its austerity for the taxpayers & workers, the capitalists are made whole.
In the case of jetstar, they can simply move the jobs offshore, but the workers have no right to strike. Capital is allowed to withdraw, yet labour is not. That is not a free market system.
I would argue to you that we live in a hybrid system central planned/socialism/crony capitalism system. Raw Market forces are reserved for those without political or economic constituency in the halls of central planning.
Last edited by breakfastburrito; 20th May 2011 at 21:40.