Is the 'free market' concept always a good thing?

Thanks 2sense! And thanks jshore for the Frank refresher.

erislover: I had said: “…but the “free market” adds a dimension of unreality.”

eris replied: "hah! Adds unreality to a myth? :slight_smile:

No, not at all. Please re-read my post. Market forces are very real. Indeed, I take them to be more real than you do, apparently. What is “mythical” is the freedom attributed to markets.

[deregulated broadcasting industry has resulted in less freedom of choice not more]

eris: “I agree that the very presence of government makes a free markets impossible, and the converse would be true as well: a completely free market renders governments impossible.”

Excellent. Here we are at last on the same page. Markets and governments are mutually intertwined. The only question worth debating is how much government interference is required. Hence, the term “free” market is totally misleading. However, one might reasonably use the term “freer” markets.

“But monopolies don’t render free markets impossible.”

Ah, now you’re onto a very interesting point indeed. For the purpose of shorter arguments, let us call a market “deregulated” when government interference has been reduced to the bare minimum. Now, yes, indeed, monopolies aren’t at all inconsistent with deregulated markets. Quite the contrary: deregulated markets tend to produce monopolies. We see this trend just about everywhere that deregulation has taken place.

“I don’t understand what you mean by “excessive” corporate power; how much more excessive can they be than our government is now?”

As far as the market goes, much, much more. Let us take the broadcasting industry, first deregulated in the 1980s and then deregulated again in the 1996. What this did was increase the number of radio stations that any one corporate entity could own. The situation it has led to is that a very small number of companies now own the vast majority of radio stations in the US. To make them as profitable as possible they play computer-generated playlists, adhere to boring formats, and target certain advertising demographics. This basically means that radio has lost all of its local flavor, that DJs have been reduced to computer accessories (whose main use is to “shock” a few people on morning or talk radio), and that the likelihood of your hearing anything unusual on the radio (unless you live way out in the sticks) has become almost nil.

A few years ago William Kennard, head of the FCC under Clinton responded to the public’s growing malaise with this situation by issuing a call for low power radio stations–b/c of new technology they would broadcast between the existing FM dial. There was huge support for this amongst citizens including community organizations, schools, church groups. To make a long story short, the measure was rescinded when the industry lobby falsely insisted lower power radio would interfere with their signal. Everyone new this was technologically bogus; the real reason was that the industry, an oligopoloy, feared COMPETITION. In the wake of this Congress not only rescinded the measure, they also reduced the power of the FCC chairman to issue such directives.

Now you tell me, erislover. Who’s more powerful: the National Association of Broadcasters, which spends millions of dollars buying up members of Congress, or William Kennard, chair of the FCC? In other words, what is more powerful, an oligopolistic industry or the government’s ability to curtail the will of that industry?. And where do you and I stand in all of this. We get the mantra of “If you don’t like it change the channel.” What William Kennard tried to give us was the opportunity to make that choice slightly more meaningful to us; and look what happened.

“You were quick to state that the free market was a myth. I agreed, and say that all markets are a myth, just like governments.”

Well I don’t see how you can call “all markets” or all “governments” a myth when they have such strong empirical existence and tangible influence over our lives. There’s a difference between an abstraction–a term such as market forces used to describe the sum total of complex interactions–and a “myth”–an illusion of something that exists when it does not. Markets exist. Governments exist.
If you doubt that, go shopping and register your car ;).

“Oh, i think market forces are real, too. They just come from people or their unconscious decisions which affect the environment (meaning “there is no more oil” or “shoe prices have skyrocketed”— so both in a ‘nature’ sense and a societal one).”

Here you reduce “market forces” to the choices of consumers. What you leave it is all of the things that happen prior to consumers having choices to make. Before consumers choose there has to be production, then there is marketing and advertising, then finally there is consumer choice. Think for example of all the scripts circulating around Hollywood, or the ideas for new TV shows that never make it past the boardroom. You can’t “choose” to see them (or not), because they will never get to the market in the first place. In this respects markets work very badly indeed. What tends to happen in the culture industry (but also in other sectors) is that consumers really value an original product. So an original product, often costing very little money, will make it onto the silver screen, generate huge profits, and the studios, who are loath to take risks respond irrationally by imitating the original idea. But this is exactly what consumers didn’t want. They wanted originality; not the endless repetition of a once-novel theme.

“Market aren’t value-neutral, they simply don’t exist to serve values. They just are.”

This makes no sense erislover. You need to think this through more carefully. Markets exist to serve human needs and fulfill human desires. (They also function to create human desires, but let’s leave that out for the moment). Consumers are asked to make choices from what is available on the market. These choices reflect their values. Therefore markets exist (partly) to serve consumers’ values. A good example of this is the large number of organic and vegetarian products now available in mainstream supermarkets. This reflects Americans’ increasing “value” for healthy foods and/or animal-cruetly-free foods. Here markets have functioned relatively well. Indeed, not long ago the major food producers attempted to change the government’s definition of “organic.” Citizens rebelled with a massive protest. In this case corporations and their political buddies had to defer to consumer will.

“We may say something like “the market is currently set up to promote the destruction of the environment” because we see a trend of the environment being damaged. does that mean people who interact in the market value the destruction of the enviroment?”

No it doesn’t. You’ve hit the nail on the head! :slight_smile: You can now see how markets often pervert people’s desires and reduce their freedom to express their values. If SUVs were marketed truthfully–as detrimental to the environment–few people would buy them. Instead they are marketed as image and power enhancing lifestyle accessories. People want to feel powerful and unique; but people also want a healthy environment. Markets here are playing to one side of consumers’ values, while carefully masking another.

I had written: "I want the same kind of market that Hazel wants: one that empowers individual consumers, respects their citizenship, values the environment, cultivates human (and economic) diversity. For the market to do that the state (or perhaps local government) has to play a regulatory role of some kind.

eris: “Why should the common man have such a powerful say in what how the market forces operate? I wouldn’t hire a person whose only experience and knowledge was in janitorial services to perform a kidney transplant on me.”

I’m not sure where you read into what I’ve written that I want the government to force you (an empowered individual consumer) to choose a janitor to perform your kidney surgery.

“One becomes a holder of significant economic power by working within the market constructs efficiently. This person has demonstrated they have what it takes to manipulate the market, something you want to do, but obviously can’t. Now, what would be a better method of serving your interests: trying to coax all the citizens of the US to agree with your idea of how a market should operate or the few men who have demonstrated their ability to interact in the market with stunning success?”

Actually, I think most people already want better television than Rupert Murdoch wants to offer them. I think most people already want more software choice and better software choice that Bill Gates wants them to have (see the OP). Consumers often know when they are getting the shaft: I don’t need to persuade them of that. They just have forgotten how to act like citizens (at least some of the time) in order to empower themselves as consuemrs.

What you are leaning towards above is a fascist society wherein those who dominate the economy also dominate political and social life. IMO, that is not only not a very enjoyable prospect for you and me, it is only very unstable. The greatest peace and prosperity has come from societies in which power and wealth are distributed as equally as is possible. This requires a balance between government and markets: that balance can range between the US model and, as jshore pointed out, the Scandanavian model.

Like many an “Ayn Rand Lover” you seem to have an implicitly Nietzschean love of supermen; you seem to want both to be one and, failing that, to identify their achievements with your own personal desires. Consider: the last leader significantly influenced by Nietzsche’s philosophy was Adolf Hitler. That is not the way I want to go; and I think most Americans share my views. Insofar as economic inequalities begin to great vast differences in political power, a democracy ceases to be functional. I think most Americans want a functional democracy; not rule by an uber-elite of politician-buying corporate supermen.

:smiley:

I suppose this isn’t exactly the place to debate about whether or not anything called a market exists. Apparently we agree on many things, however. I didn’t doubt it.

Indeed. Without the presence of a government you would have a free market. What most people seem to call a “free” market isn’t free at all. It does come down to how much and what kind of regulation do we want once the existence of a government has been accepted.

My point about monopolies is that they naturally occur without explicit regulation against them, but that isn’t necessarily a bad thing. I trust we agree on that as well.

Boo-hoo. I stopped listening to the radio when I was in seventh grade. I buy my CDs straight from the artists or the record companies that released them and I am done with it. It would be interesting to see what would happen if others did the same.

If I don’t like a product, I quit using it. I don’t recall being born with any great powers which require I listen to the radio, or that a radio’s paylist should serve my interests exclusively.

Neither is more powerful. They each have their realm of influence. What you suggest is that the government should be more powerful in that it should be able to tell the broadcasters what to broadcast.

Hey, the word “white” has a lot of meaning in my life too. I am not sure that white exists. I am sure that I can reference white as an abstraction of things that do exist.

A government can be thought of in two ways. It can be thought of as the laws that exist in a country, or it can be thought of as a group of individuals who write down laws and force people to abide by them. I’m not sure which one is truly more accurate, but I would lean toward the latter as the individuals can change the laws.

A market, also, can be thought of in different ways. If we have economic formulas describing the operations of capital and resource allocation inside an area, do we think the market exists? It exists as much as we agree it does. Paper money, like board games. Implicit rules of interaction, and explicit laws of interaction. We agree on the structure interaction should take (with respect to labor, services, and physical goods) and call it a market. Is this somehow less or more real than a government? Are both equally real?

I personally don’t think so. All rules can be changed. Markets and governments are infinitely flexible in theory, and pretty close in practice. They are near-perfect abstractions like “white” or “round.” We can go back and forth about whether they have existence at all. We will not disagree that they have an influence on our lives. But what I want to say is that interaction exists, not the model for interaction. The model affects us only when we allow it to (collectively).

And those things were based off the decisions of prior consumers. True, some decisions were made by the people who offered the product in the first place, but even so those were made within the idea of marketing the product or service. Businesses go bankrupt all the time because of choices consumers make. They lose and gain money. I accept that when the market pleases me and when it doesn’t, because it is the same market the whole time.

No one who interacts in the market is unaffected by it.

This, I don’t think, is borne out by empirical data.Digimon got pretty popular, as did pokemon. PlayStation vs Nintendo vs Dreamcast. they offer a somewhat similar assortment of games, sometimes exact ports. people buy what they want, or they by the closest facsimile to what they want, depending—of course—on what is offered.

I disagree here very much. Markets exist as a practical (and natural) extension for humans trying to realize their desires, but they aren’t consciously constructed. The only way you can get a market to serve your needs is to get the people who interact in the market to serve your needs.

I do not feel people exist to serve my needs.

No, they acceeded to government will. If they acceeded to consumer will they would have shifted the part of the market they controlled or operated in to suit the consumers needs.

It doesn’t pervert it at all. It just so happens that the desires we have had the effect of causing damage to the environment.

Well, you were meant to extract meaning from that as I applied to the conversation of empowering consumers. Many people I know have a hard time keeping their checkbook balanced. I don’t want that person having a keen influence on the economy. If I were hiring for positions of influence in the economy, I’d pick all the big business people who have demonstrated their ability to work in it effectively.

:confused: Me, the one who seeks to remove the realm of politics from the market as much as possible? It seems to me that we both want a fascist state, then. I want a state where people make their economic decisions based on attempting to influence the market from within the market. I want a government where people attempt to govern themselves. I am not sure this is fascism.

We have seen evidence that adjusting the market does not empower consumers. It offers them more choices, and we still fiddle with the economy because no one learns anything. since it is currently our goal to keep the ship up versus teaching the quartermaster how to steer it we will continue down the path of regulation versus education. :shrug: You tell me who wants fascism.

I don’t think you do. But I think the suggestions you make pave that road. Just like all the people listening to the radio stations that they didn’t like paved the road to worse radio stations. Just like (as you suggested) consumer preferences were accurately represented in supermarkets. We make our choices on how to interact. The difference between choosing regulation and choosing to exhert what power we have as consumers is one of practicality, it seems. But I don’t like it.

Not particularly. I am my own superman. I like setting my own rules for how I will interact, and do that to the best of my ability. I respect people who pick a construct for interaction and achieve the goals that come with that abstraction.

I am the most important person in my life. That does not automatically imply others exist to serve my interests. I am permanently leary about forcing people to serve other peopel’s interest. This debate happens to be in a market construct, but it is true for all things.

This is impossible in a representative democracy. We’ll just make sneakier politicians. But that, too, is another debate I think. You do recognized the intertwined aspect of the market and the government; yet you seem to want to seperate that aspect. I do not feel it is possible to do so. If you implement your economic choices in the form of political power you undermine the market you want to respond to your (not static!) wants and needs.

When I look around the country I live in (the US, as we’ve seen) I see a land of empty promises made by politicians and businessmen alike. This is because we as voters and consumers aren’t doing our job. I cannot see the subject in any other way at this time.

erl replied to Mandelstam: *“and that the likelihood of your hearing anything unusual on the radio (unless you live way out in the sticks) has become almost nil.”

Boo-hoo. I stopped listening to the radio when I was in seventh grade. I buy my CDs straight from the artists or the record companies that released them and I am done with it. It would be interesting to see what would happen if others did the same.

If I don’t like a product, I quit using it. I don’t recall being born with any great powers which require I listen to the radio, or that a radio’s paylist should serve my interests exclusively. *

But this implies that radio is exclusively a commercial “product”, instead of being also to some extent a public good. I think that that way of looking at it impoverishes our society in many ways: in the first place, of course, it means that the only people who have the same freedom that you do to exercise choice about what they listen to are those who are similarly able to afford to purchase the CDs they want.

*“In other words, what is more powerful, an oligopolistic industry or the government’s ability to curtail the will of that industry?”

Neither is more powerful. They each have their realm of influence. What you suggest is that the government should be more powerful in that it should be able to tell the broadcasters what to broadcast. *

I doubt that Mandelstam or anybody else here is really suggesting a completely state-controlled broadcasting system. However, if we view broadcasting as to some extent a “public good”, it doesn’t seem unreasonable to require commercial broadcasters to make some of their playlist and other programming responsive to that public responsibility, not solely to the profit motive.

*“Indeed, not long ago the major food producers attempted to change the government’s definition of “organic.” Citizens rebelled with a massive protest. In this case corporations and their political buddies had to defer to consumer will.”

No, they acceeded to government will. If they acceeded to consumer will they would have shifted the part of the market they controlled or operated in to suit the consumers needs.*

To some extent, food producers do do that, of course, but it is often quicker and cheaper to try to do an end-run around “consumer will” by changing the definitions so that consumers think they’re getting what they want without producers’ having to go to the expense of actually providing it—as with the attempts to revise the FDA qualifications for “organic” food. You’re right in drawing a distinction between “consumer will” and “citizen will”—in this case, food producers were unsuccessful because of government fiat, not in response to consumers per se, but that government fiat was strongly influenced by the expressed will of citizens.

*Many people I know have a hard time keeping their checkbook balanced. I don’t want that person having a keen influence on the economy. If I were hiring for positions of influence in the economy, I’d pick all the big business people who have demonstrated their ability to work in it effectively. *

I think that a problem with this line of reasoning is that it seems to assume that the economy should reflect absolutely nothing but market values. You seem to be saying that since the economy is about making money, only those people with demonstrated expertise in making money are really qualified to have positions of influence in it. Yet the economy is also about many other things which involve extra-market values: fairness, security, compassion, stewardship, and so on and so forth.

People with positions of influence in the economy are continually impacting many other people in many different ways, in terms of both market and extra-market values. But they are not necessarily the ones who have best “demonstrated their ability” to work with extra-market values effectively. Maybe some of the people who would have the best influence on the economy in that respect are even among the group who have a hard time keeping their checkbooks balanced. That, I think, is the best reason for trying to keep some form of separation, and even opposition, between markets and government: because a society must deal with issues that the market is not equipped to handle responsibly.

When I look around the country I live in (the US, as we’ve seen) I see a land of empty promises made by politicians and businessmen alike. This is because we as voters and consumers aren’t doing our job.

I quite agree. However, if we are to face up to the fact that we voters and consumers aren’t doing our job, we should also recognize that that is partly due to the influence of the market. It is much easier for many businesses to make money when citizens and consumers are apathetic, distracted, and ill-informed than when we are keenly scrutinizing products and policies and loudly complaining about the ones we object to. Therefore, a great deal of money is spent—in the media, in politics, and in just about every aspect of society—to help keep us apathetic, distracted, and ill-informed. Certainly, let’s accept responsibility for our own failures to maintain a functioning democracy, but we also have to assign some responsibility to the entities who have worked so hard to encourage those failures.

erislover, kimstu has already responded to the parts of your post that would have most interested me. (Greetings, kimstu; it’s been too long :))

But I will offer my own complementary reply to one particular set of remarks:

“Boo-hoo. I stopped listening to the radio when I was in seventh grade. I buy my CDs straight from the artists or the record companies that released them and I am done with it. It would be interesting to see what would happen if others did the same.”

There are a number of problems with this reply, one of which was pointed out by kimstu (radio is a public good as well as a “product”). I myself have two main problems here. First, you assume that music radio is reducible to recorded music; therefore if one is lousy and the other not, a consumer need only switch from one to the other as you claim to have done. But music radio, at its best, is far more than a way of hearing music. It has a communal aspect that I very much value. Listening to a radio station that one really enjoys–in one’s car, at home, at work–provides a tangible sense of community with other listeners and with the DJs that listening to CDs simply doesn’t.

Second, I think you’re going out of your way to dismiss a clear example of where the market has failed consumers. Here, in other words, is a clear example of where the market has thwarted consumers’ freedom to choose rather than facillitated it. And the reason for that problem, in this case, was the withdrawal of government’s anti-oligopoly legislation.

Let’s say, for argument’s sake, that the citizens who protested against the redefinition of “organic” had failed. They would then be unable to distinguish between the kind of food they really want to consume, and the kind they don’t. Although the cases aren’t exactly parallel, that infringement on the choice or organic food consumers–motivated entirely by corporate profit-seeking–would have been somewhat like what has happened to people who really enjoyed listening to radio prior to deregulation.

“If I don’t like a product, I quit using it. I don’t recall being born with any great powers which require I listen to the radio…”

Again, here you’re just making excuses for something that a “freer” market (in this instance more free of excessive corporate power) wouldn’t allow. I don’t recall either of us being born with great powers that require that we drive cars, fly in planes, or communicate via the Internet–yet neither of us would like it if either government or corporate interference in the market deprived us of these opportunities.

“…or that a radio’s paylist should serve my interests exclusively.”

Here is one of several instances where you imply that my grievances with the market reflect an unjust desire on my part to command markets to serve my “exclusive” interests. Poppycock! As I’ve said before, millions* of people are fed up what’s happened to radio. Millions of people want better television programming, free airtime for political candidates, and a reduction of environmental harm. These are areas in which there is widespread citizen concern: though not quite strong enough (yet) to result in impacting the market.

BTW, how long has been it, erislover since you gave up listening to radio in the seventh grade?

I can’t really contribute to a discussion of the theory of free-market economies, and this one point certainly isn’t the most original and will probably be ignored. However, whenever I hear people talk about how everything would be better if businesses were free from government control, I think about the closest we ever got to such a scenario: the Gilded Age. From my limited knowledge of the time period, I distinctly remember a constant barage of images depicting the despicable conditions workers were subjected to and similiarly the despicable lack of quality consumers were subjected to (Sinclair style)

So how can you argue that that kind of thing won’t occur when it so obviously did the last time we tried it?

Kaje,

I agree with you wholeheartedly. I think we can learn from the past and can see how libertarian economic solutions have failed us in the past (and continue to do so to this day) because of the excesses that corporations etc will resort to if unchecked by the power of the citizenry as expressed through other collective entities such as government (and unions). I don’t know why this argument doesn’t carry more weight although I guess history is always open to interpretation … After all, one of the main points in that Milton Friedman book that Sam Stone referenced (at least judging from the reviews of it at Amazon.com … Sam can correct me if I oversimplify here) is that the Great Depression is not the result of insufficient government regulation of the financial markets but rather excessive government interference in them. Go figure.

The same way you can argue that we won’t go back to riding horse-and-buggies either.

First, even if you accept that the Gilded Age was an example of an unregulated market that libertarians want to duplicate, you need to sort the bad things caused by the lack of regulation and what were caused by the fact that it was the 1890’s. Yes, there was child labor, adulterated food, worker exploitation, etc. at the time under an unregulated market. Did regulated markets of the time or before have the same features? Were such things considered the norm around the world? Or did they simply start when the government loosened regulations?

I would argue that the prosperity created through the free* markets of the time was the primary factor in getting the people to demand more. When people’s standard of living increased, they decided that they didn’t have to tolerate certain things that until then had been the norm.

I would also argue that the government of the time was often used to unfairly help certain powerful individuals and corporations. A free market is a different thing than a corporate oligarchy. A system where companies pass off dangerously adulterated food as being healthy without repercussions is not a freer market than one where this is considered a crime. It is one where the rule of law is unfairly applied.

As for Friedman’s book, he makes the case that the monetary crisis during the Depression (which was only part of the whole problem) was exacerbated by the politics of the Federal Reserve Bank, which did exactly the wrong thing. At one point, Congress finally mandated that they do the correct thing, but as soon as Congress was out of session, the Fed went back to doing the wrong thing. Basically, what he saw as the problem was that the country decided to have a system that would prevent certain things from happening, and when the time came for it to, it didn’t, and since everyone was counting on it to work, they didn’t solve the problem as they would have before the existence of the Fed.

As I recall, the scenario was that prior to the Fed’s existence, banks would close during runs on them, but still allow regular customers to continue to use them as before, and balance things on paper with other banks. This system generally worked to prevent many, but not all, bank failures. So the Fed was set up to keep banks from having to close. When runs on banks started during the Depression, the Fed was in the middle of a power struggle between the central board, and the branch banks (primarily the New York branch). To assert its control, the central board did the opposite of what the New York branch said to do. Since the banks were trusting the Fed to do what it was supposed to do, they ended up getting screwed.

*[sub]I am not using free in any sort of absolute sense here.[/sub]

waterj2: “Yes, there was child labor, adulterated food, worker exploitation, etc. at the time under an unregulated market. Did regulated markets of the time or before have the same features? Were such things considered the norm around the world? Or did they simply start when the government loosened regulations?”

water, if you are implying that heavy-duty child labor and 15 hour days had been a longstanding norm, you are incorrect. The industrial revolution created these unprecedented conditions and laws were passed to curb them. Prior to the IR people primarily worked with the seasons, and worked during daylight hours. Ultra-long days of toil were limited to peak periods of the agricultural cycle. Children worked–in the fields and by assisting their parents with home production. Or they worked as apprentices to acquire skills from a craftsman. Life was far from easy and often downright crap but it was nothing like work in unregulated coal mines and factories: where 8 year old children were working 15 hour days.

We do not need to guess as to whether or not modern employers would resort to child labor and unsafe conditions if they could get away with it. They already do get away with it: in countries such as Indonesia and Thailand. (There are also illegal sweatshops right here in the U.S. of A.) Conditions are not quite as atrocious as in the worst of the “Dark satanic mills.” But they’re bad enough. The 1890s have no special monopoly on greed or inhumanity.

So long as something is a) legal and b) profitable there will be many people ready to do it and–in a free market–they will undersell those who don’t. Do you really doubt that waterj2?

Thank you waterj2 for bringing up some good points… I can’t refute any of them, but I wonder: is the free-market argument simply that a free market wouldn’t create an environment much worse than a controlled market, or that it would create a better environment? I personally wouldn’t be in favor of a policy that only maintains the status quo. So even if conditions weren’t appreciably worse than before, is that enough to show that a free market is a good idea?

Also on the note of greater prosperity creating a desire for better conditions… It was my understanding that during that time period the upper class prospered at the expense of the lower class, without much of a middle class at all. If this is the case, then who is there to demand better conditions? In a society where everybody gains from industrial increase (sound like Reaganomics anyone?), this is fine, but that doesn’t seem to be how it actually works.

Getting lotsa debating going now.
Kimstu

I simply don’t see the evidence of it being a public good, unless you mean that it is a useful tool for the government to update the public in real-time (or a reasonable facsimile of it). If you mean it is in some ways a public good because it is, by nature, very limited then I suppose I could possibly agree…

Except that it isn’t being used as a public good, its being used a entertainment (with the exception, possibly, of NPR). In that case, its definition as a public good, IMO, goes right out the door.

I didn’t think I was implying that.

Yes, it is also quicker and cheaper to simply regulate businesses rather than educate consumers so they can make adequate choices. It is my contention that this is the whole problem short term thinking on the part of those who do desire to empower consumers.

I agree that the market should represent those forces, and I think it does. What doesn’t happen is the people interacting in the market supporting the values as consumers that they are so quick to regulate as citizens; thus, we don’t see a preponderance of the market reflecting these values (I wouldn’t think that those values necessarily exist outside of the market construct; rather, I think they are present in any form of interaction—but then, I think that is what you meant).

Now, I know we’ve gone over this before and we still see no resolution here. I don’t feel that the government is in any way more stable than the market, and so I don’t want to depend on one to control or support the other.

Markets and governments both are simply made of men. These men are responsible for their actions by different means; governments by public voting and businessmen by consumer purchases. That the two interact at all is inescapable; that the two could be stretched apart as far as possible is my desire.

The same goes for politicians, and our methods (as people that don’t work in politics or aren’t big business decision makers) are very similar for controlling the two. In fact, both methods involve handing over little slips of paper :wink: Why one is somehow better than the other is, truly, beyond me.

Mandelstam
I am now 25, so that puts me in non-radio listening mode for approximately 12 years; however, I must admit that, having been subjected to radio while being around others, I did develop a fondness for Howard Stern. :slight_smile:

I trust you will reference some of my radio comments above. Where extra responss are warranted…

I don’t think so. The market fails when bad businessmen gain monopolistic or oligopolistic control over a necessity like food, shelter, and water. When the good or service is simply entertainment then people themselves failed to utilize the market. I have no concern over such an affair, and no sympathy.

Well, should it be a matter of medical concern—and I have no reason to think it is not—I would certainly agree some measures should be implemented as food is a necessity. simply wanting to whole wheat bread over processed wheat flour bread doesn’t really get me on your side, though.

Well, the government utilized automobiles and road building as a method of achieving rapid economic prosperity, adjusting for population growth, building a better ability for homeland security through transportation, etc etc etc. The same goes with planes. The market alone probably would take a long time to get airports off the ground, and even still it seems that they are struggling. But at any rate, our dissent at the removal of these goods would certainly be severe. If only the same thing could happen all the time we wouldn’t need so much government meddling.

Poppycock? :stuck_out_tongue: It is a simple matter of people continuing to utilize a non-necessary commodity with which they are displeased. I still have no pity. Radio and television are payed for by advertisers; should no one watch, advertisers would leave quick. I would miss The Simpsons and Dark Angel, but I lived many years of my life without them and I can certainly do so again.

I have changed my tune on public education since I’ve joined the boards, though. I have also agreed to some semblence of public health care (but not in the manner which many would consider by such a term). I am not impossible to convince, just frustratingly stubborn :wink:

That is, assuming you are right and I should be convinced(of which I am not convinced :D).

Do you have some cites for this?
Not that I doubt you but I would like to be able to make this argument myself.

I don’t agree. A free market is a market that is free of governmental control. Passing child labor laws does restrict the market; they make it less free. Anti-fraud regulation does the same.

Just my 2sense

Isn’t it funny how, on the issue of radio, the libertarians find themselves aligned more with the liberals? The FCC and the current state of commercial radio and television are a perfect example of government going beyond its purpose of protecting people’s rights and instead cozying up to its main constituents – Giant Campaign Donors – to preserve the status quo and erect huge barriers to entry.

erl, radio is a public good in the truest sense of the word. Like air, like water, like land, it’s just bandwidth travelling through the air, and theoretically, anyone should have access to it. Some 80 years ago, broadcasters went to the FCC, then headed by Herbert Hoover (!), and asked them to help allocate bandwidth in a useful and meaningful way, because too many entities were trying to broadcast on too few frequencies. So the agency adopted rules slicing up the frequencies, defining how wide an AM (and later an FM) signal could be, how far apart stations had to be, what wattages were permissible, etc.

Today, try to start your own radio station – even a low power station – and see how far you get. In all major metropolitan areas, the dial is used up. Unless the FCC were to make each section of the dial smaller – and no way behemoths like Clear Channel would allow for that – there’s no way to fit new stations on the air. Everything below 91.1 on the FM band is reserved for noncommercial use, so you can’t go there, either. Believe me, I have experience in noncommercial broadcasting managing a simultaneous wattage increase and frequency swap with another station, and the headaches we had trying to appease other stations – some 30 miles away – on our first and second adjacent frequencies. Cripes.

Anyway, part of the problem is that the FCC’s licensing agreements with broadcasters state that they must serve “in the public interest,” but they define that so loosely as to make it meaningless. As far as they’re concerned, “Survivor” pulling a 20 share sure means that the public’s interested. Meanwhile, the general public, except for a few community radio stations and public access on cable systems, has effectively no access to the airwaves.

Broadcasters can even reject ads for political reasons (while couching it in other terms). Earlier this year, PETA wanted to run this ad during the Super Bowl. It’s pretty silly, and not terribly offensive. Even nonvegetarians would probably laugh at it. But CBS turned them down, stating that they don’t run “advocacy ads,” even though they run spots for the United Way, against drunk driving, etc. What they really meant is, “We disagree with the political content of your ad.” So certain political points of view are effectively excluded from the airwaves.

All this is just emphasizing one of Kimstu’s and jshore’s points – that the broadcasting industry uses, with government’s imprimatur and enforcement, a public good (the EM spectrum) with complete exclusivety, and with enormous barriers to entry, to maintain a very narrow portion of political points of view and to exhort people to consumerism.

I believe in markets, and I believe in capitalism, but radio/TV are a poor argument for either.

I’m sorry, I simply don’t agree. Having a monopoly on radio will not prevent me from surviving even if you use shoddy business practices. How can this, in any way, be considered a public good?

Here’s one cite for you, 2sense: a book called Toxic Sludge is Good for You. It’s even illustrated by the inimitable Tom Tomorrow. :slight_smile:

erl, something can be a “public good” without being necessary to keep someone alive. Think civic culture.

Well, I suppose if you’re going to define a “public good” in a way that no economist I’ve ever met would possibly define it, and argue from that position, then there will be no convincing you. :rolleyes:

erl replied to me: *“It is much easier for many businesses to make money when citizens and consumers are apathetic, distracted, and ill-informed than when we are keenly scrutinizing products and policies and loudly complaining about the ones we object to.”

The same goes for politicians, and our methods (as people that don’t work in politics or aren’t big business decision makers) are very similar for controlling the two. In fact, both methods involve handing over little slips of paper Why one is somehow better than the other is, truly, beyond me.*

It’s exactly because I agree with you that one is not better than the other, and that they do share many of the same flaws, that I believe that they serve our interests best when they maintain a certain level of opposition to each other. That way, they check each other’s excesses: business resists governmental tendencies to over-regulation, and government curbs businesses’ tendency to ignore the public interest for the sake of private profit.

But to keep that opposition functioning, what we need (as you point out) is strength and vigor on the part of what I think of as the third pillar of a healthy society: i.e., the public itself, in the form of citizens’ and consumers’ groups, labor unions, etc., as well as individual consumers and voters. It seems to me that at this point, what we have instead is a government and civil society that have largely been co-opted by market interests. As pld notes, politicians are under heavy pressure to serve corporate interests in exchange for campaign contributions. And the public as a whole is continually being swamped with messages in advertising and other media encouraging us to despise and ignore political activity, to emphasize consumerism, to admire and rely on entrepreneurs while distrusting labor organizations, and so on. (2sense, some other good documentation for this is in the books by Robert Kuttner and Thomas Frank mentioned earlier in this thread. Fairness and Accuracy in Reporting (FAIR) touches on some of these issues, but they mostly deal with questions of overtly political bias in media. GlobalIssues.org has a page with various discussions of corporate media influence.)

And I agree with pld and Gadarene that your idea of what constitutes a “public good” seems to be a very restrictive one. After all, if a “public good” is limited to something that’s absolutely necessary to keep alive, then we needn’t have swimmable rivers, clean beaches, wilderness areas, wildlife diversity, civic culture, or any of a host of other social benefits beyond minimally drinkable water and livable land. I think a better definition of “public good” would encompass a much larger variety of natural and social resources, including the broadcasting spectrum.

eris, eris eris-

Radio is, or once WAS, more than simply playing songs and artists. Ever listen to NPR? Public radio alas, is dying. Here in Pittsburgh, I consider myself lucky for public radio such as WQED, which is mainly classical, but often has public broadcasts of live concerts from Vienna, St. Petersburg, New York, London, Paris, etc etc. Not to mention studies and debates on music styles. NOT something I can find at Camelot. Where else can I hear the New Years Day Concert from Vienna-the Best of Johan Strauss Jr? NOT on a CD-at least not LIVE. My radio also connects me with the latest news.

And some of us can’t afford too many CDs.
I will admit to knowing squat about economics and the market-my extent of knowledge is more about basic level customer service at the retail level-ie, checkout beeotch at Kmart. :wink:

A market that is free of government control is anarchy. Most people who consider themselves in favor of free markets are not anarchists. Sure, you can consider the term “free market” to mean that, but it is not the standard usage.

Mandelstam, no I was not claiming that. My point was that during the Gilded Age, many of the bad aspects that kage was attributing to the free market were not actually caused by it. The free market can only be used to correct problems that people acknowledge to be problems. What is considered an acceptable status quo has changed much since then, so it is unreasonable to expect the market to encourage the same practices it did as it did in the 1890’s.

Yes, sweaatshops do exist in poor countries. I don’t really see this as a problem caused by free markets, as many of those countries have less free markets than the US, the EU, or Japan, which have far fewer sweatshops. Sweatshops are only encouraged by the market if they are at least as good an option as the alternatives, which means primarily poor countries. Government regulation did not stamp out sweatshops in the US, affluence did. Now, it is primarily the government’s policy on immigration that creates the conditions where some people don’t have a better alternative.

This is not to say that government regulation has not improved upon certain things. For example, while in theory market forces could have created incentives to keep incidents like the Triangle Shirtwaist fire from happening, it probaly would have acted far less efficiently than government regulation.

Democratic institutions also should have a place in correcting for certain externalities that the market doesn’t handle well. Pollution is a prime example. Since pollution imposes a cost on a large number of bystanders who cannot efficiently bargain a fair recompensation settlement (especially in the case of long-term global effects), there is a place for government to act as an agent of the people in collecting money from polluters to properly get the market to deal with the problem.

Generally, I prefer to not try to correct every externality, nor even as many as jshore, for example, as the mechanism is imperfect and subject to corruption. But I think we’re on the same page as relates to the underlying theory of government action to correct externalities. Like jshore, I would prefer the government to use market based solutions such as carbon taxes to deal with global warming.

Anyone is welcome to explain what we mean when we say “public good” or they can wait until I get home this evening to check it out for myself. After that we are free to roll eyes at each other.

And i simply cannot stress this anymore than I already do. The public is responsible for society, not the government, not consumerism. Our constructs for interaction are mirrors to our metaphoric souls (to me). If we see a problem with the market then we see a problem with ourselves. The market is nothing more than that. It only exists because of us. There is no other source. The same goes with government. So when we turn to one to overturn the other we accomplish very little in reality.

IMO the greatest strength comes from democracy; that is, self-government through a body of laws. That goes just as true from the market. I believe in a free market, the logical counterpart of democracy.

Unfortunately for me, in both arenas we see a trend toward greater regulation. I will continue to resist that trend.

As well they should be. Corporations hold a vast amount of economic power. But as politicians they already have political power. There is nothing else to offer them but complacency through wealth. Short of implementing congressional thought police I see very little that we can do about “corporate interests in politics.” Since politics created the legal entities called “corporations” and politics affects these legla entities, I see no reason why—given the construct—that corporations shouldn’t be able to influence politics.

Hence my distaste for corporations. It gives the affluent two votes.

Hmm, perhaps. In some of the above I agree, but in others I don’t. A matter of perspective, I suppose.

Do you not admire those who legitimately came to power? Earned their wealth? Maintained family wealth (which normally doesn’t last three generations)? I admire them. I also admire bums; were I in those shoes I might consider suicide as a viable option. Their will to live impresses me.

I do not admire theives, who want market products without working inside the market construct. I do not admire politicians being bought, who want economic power without working inside the market. I do not admire those who pay them off, who desire political power without having to answer to politics’ requirements for power. In short, I do not admire people who work outside the system whose fruits they are after.

Well, if I said absolute necessity then I was far too restrictive. My concern focuses on functioning versus entertainment. Hell, silicon is then a public good as it is used in my video games. And they should make the games people want to play, not the same rubbish that people keep making. And what is with programming languages? They are so complicated, and my time is limited. Should time be a public good? We all want it, it is limited, corporate and political influence encroach upon our use of it for non-survival. Please, give me a working definition of public good and we can return to the conversation over radio stations.

Apart from what I outlined previously—that is, the use in government—I cannot see that an entertainment good is public.

We may certainly declare it so; then I would disagree with the laws.

Well, what “we” mean when “we” say “public good” is the same as what “economists” mean when “they” say it. The two key concepts as far a public goods are non-excludability and non-rivalry. That is, anyone can use it, and it doesn’t wear out. Beaches are a public good. So are traffic lights. See here, fer cryin’ out loud–it’s a freshman-level Econ 101 term.

We aren’t talking about the radio programs, we’re talking about radio itself–the electromagnetic spectrum. It is, by any reasonable definition, a public good. It is up there, it is non-rivalrous, and it is non-excludable (in the economic sense). Yet, if I were to set up a transmitter tomorrow and start broadcasting, say, Polka music at 94.7 mHz at 500 watts – technologically, a relatively simple proposition – you can bet that the FCC and WARW-FM would be all over me like white on rice. They have managed to construct barriers to entry, and get the government to adopt such strict licensing and lax ownership rules, that the public is effectively excluded from use of the airwaves.

Right now, a few giant corporations own more than 90% of the radio stations in the country. In some large markets, one company owns several stations, and formats are becoming increasingly homogenous. This is not how the airwaves should be used. Anyway, this topic probably deserves its own thread. But if you’re going to try to discuss it, please don’t act like we’re all using some Venusian definition of “public good.”