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US Politics Mega-thread - Page 1385

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Read the rules in the OP before posting, please.

In order to ensure that this thread continues to meet TL standards and follows the proper guidelines, we will be enforcing the rules in the OP more strictly. Be sure to give them a re-read to refresh your memory! The vast majority of you are contributing in a healthy way, keep it up!

NOTE: When providing a source, explain why you feel it is relevant and what purpose it adds to the discussion if it's not obvious.
Also take note that unsubstantiated tweets/posts meant only to rekindle old arguments can result in a mod action.
Nyxisto
Profile Joined August 2010
Germany6287 Posts
Last Edited: 2014-11-01 19:50:55
November 01 2014 19:49 GMT
#27681
Would you mind giving us an example of this Utopian free-market you are advocating or are you just speculating here? Also I have the feeling that someone has invited Noam Chomsky's fanclub into this thread, no matter what topic every second post is some kind of anarcho-libertarian fantasy scenario.
Vegetarian
Profile Joined October 2008
119 Posts
November 01 2014 19:56 GMT
#27682
On November 02 2014 04:10 Leporello wrote:
Show nested quote +
On November 02 2014 03:50 Vegetarian wrote:
Everything you refer to in your first paragraph falls under standard of living which is improved in a free market system and reduced in a centrally planned system.

What is pareto efficiency? Perhaps you can address my arguments instead of invoking straw men. I am referring to the efficient use of earth's resources based on the concept of supply and demand. (http://en.wikipedia.org/wiki/Supply_and_demand)

Inequality is minimized in a free market because it increases the standard of living for all people. Inequality is maximized with central planning because this ensures that more of societies resources are wasted. Competition is never perfect, it only needs to be free to result in a rising standard of living.

Public transportation is fully capable of being provided by the free market and there are numerous examples of this.

Can you provide an argument for why the free market cannot provide any of the products or services that you list? Can you provide an argument that a centrally planned monopoly on select goods or services results in a higher living standard and not a waste of resources? If a product or service cannot be supported by the free market then why do you think you know better as to how societies resources should be distributed? This mentality is what creates inequality.

The graph you provide does not even show the USA which has significantly more regulations than the healthcare industries of most countries. I am not sure why you believe it is a good example of a free market. Maybe you can make an argument?

The graph does show the USA -- look at the right side of it. Do you honestly not see it?
And it's arguable, if not blatantly false, that the USA's healthcare industry is more regulated than something like UK's NHS.

BUT -- while not more regulated, it certainly is the most bureaucratic healthcare industry in the world. It's just that the bureaucracy exists outside the government.

It's a prime example of how wasteful private industry can be if the market is completely taken for granted (and the need for healthcare is something you can always take for granted). There is all the incentive in the world to inflate the "need" for healthcare, and no incentive to actually shrink the industry for efficiency's sake. Business wants to enlarge, business always wants growth. You get giant middle-men industries. You get pharmaceuticals marketing themselves to the lowest common denominator of ailments.

Prisons, healthcare -- any service towards the basic necessities of life and society should not be given incentives and made to grow off of profit. Why can conservatives not see how awful this line of thinking is, that "private industry is always more efficient"? The truth is: inefficiency can be profitable, businesses are bureaucratic messes as much as governments are, and some markets are not meant to be grown and exploited, "free" or otherwise. Servicing society's miseries and ailments should ideally be something you need as little of as possible. You make prisons and hospitals things of profit, and all of a sudden you have a lot of "criminals" and "sick people" on your hands.


Business wants to enlarge but they are restrained by the market for the product or service that the business is providing. If the business enlarges without adequate demand it will lose money. The middle men in health care are created by government mandates which make it law to purchase an insurance plan from these middle men or face tax penalties in this country.

Since food is the most basic necessity of life do you believe that the government should be in charge of it?

Do you know what happened in Communist China when the government was in charge of the food supply? Do you remember what happened in the Soviet Union when the government was in charge of the food supply? Hint: Millions of deaths due to starvation.

You should read my previous posts to gain an understanding of what efficiency actually means in the context of a market. Your conclusions are backwards and assume that healthcare quality increases and cost decreases when they are centrally planned.

Why do you think prisons are a basic necessity of life?
xDaunt
Profile Joined March 2010
United States17988 Posts
November 01 2014 20:00 GMT
#27683
What do women want? Freud’s question, yet to be fully answered, has roiled the contest for what should have been a safe Senate seat in Colorado.

Thinking he knew the answer to that query is how Senator Mark Udall, the Democratic incumbent, could end up losing his job to U.S. Representative Cory Gardner, a conservative Republican who is otherwise on the wrong side of so many issues that matter to Coloradans.

Defeat would be a shocker for Udall, who belongs to a storied political family and easily won his seat in 2008, even though he was the candidate who’d had the most money spent against him.

Back then, he ran a normal campaign. This time, he has almost exclusively centered his campaign on women while getting us almost completely wrong. Unfortunately for him, Freud's question can only be answered in the negative: We know what we don’t want, and that is to be treated like ninnies, the sum of our body parts, captives of gender.

Udall and his consultants -- who should be drummed out of politics for malpractice -- are running a campaign way beyond its sell-by date. Legend has it that in 2010, his fellow Democratic senator from Colorado, Michael Bennet, won a close race by concentrating on women’s issues. Of course, we don’t know whether Bennet won because he ran on women’s issues or whether he won while running on those issues among others.

If there’s one thing women keep an eye peeled for it’s men who try to manipulate them. If you are trying so hard to pander to us on one thing, it’s because you are assuming we are one-issue simpletons who won’t penalize you for ignoring all of the other things we care about. Turn me into a Barbie doll voter, and I will turn on you.

More than half of Udall’s ads are about Gardner relegating women to second-class citizenship and his attempts to limit their reproductive freedom, including access to contraception. Gardner outmaneuvered him by calling for over-the-counter birth control, which neutralized the issue (despite the fact that it would cost women more than it does if it's covered by insurance), but Udall kept at it. In its surprise endorsement of Gardner, the Denver Post wrote that in an "obnoxious one-issue campaign," Udall "has devoted a shocking amount of energy and money trying to convince voters that Gardner seeks to outlaw birth control."

Udall suffers from a lack of colorful enemies to fight. Had this been 2012, he could have counted Republican foils such as Missouri Representative Todd Akin, whose bid for a Senate seat crashed and burned after he spouted bizarre claims about women possessing natural defenses against getting pregnant if raped. Sadly for Udall, what’s left of Republican discipline kept ridiculous candidates out and put a muzzle on anyone who snuck through and might make a peep. Look around for gaffes. There aren’t any.

The gaffes are on the Democratic side. Because Udall’s message hasn’t caught on, he says it louder, like a boor with an unfunny joke, and thus opened the door to outside groups to go even further. Up went an ad asserting that Coloradans wouldn't have access to condoms should Gardner win. Shortly after that ad, Gardner got a big bump in the polls. A SurveyUSA poll published yesterday by the Denver Post, showed Gardner at 46 percent and Udall at 44 percent .

You can see how Udall took a wrong turn: He’s right about Gardner, and can’t believe voters won’t see it. On the merits, the Republican doesn’t care about women’s issues. In 2006, Gardner opposed legislation to allow pharmacists to prescribe emergency contraception, and proposed disallowing Medicaid to pay for Plan B emergency contraception. In 2007, he opposed a state House bill requiring hospitals to inform sexual assault victims of the availability of emergency contraception. He favored “personhood,” until it wasn’t to his advantage to do so and seems to have gotten away with it. Gardner would still ban some forms of birth control, and supports a federal bill that would do the same.

Consumed as he was with pointing this out, Udall didn’t move on to exploit Gardner’s real vulnerabilities, not just among women but also with voters across the political spectrum. Coloradans care about the environment, and Gardner decidedly doesn’t. He’s not sure human activity has anything to do with climate change. One of his first acts in Congress was to increase offshore drilling in Alaska, promote fracking, cheerlead for the Keystone XL pipeline and weaken the Environmental Protection Agency. On other matters, he wants to root out nonexistent fraud in the earned income tax credit, and is against same-sex marriage and any tax increases.

But now, with his Kennedy teeth and hair and upbeat manner, Gardner is getting to define himself while Udall now looks like the one-joke candidate. Multiple visits from Bill and Hillary Clinton and one from first lady Michelle Obama haven’t moved the needle in his direction.

Meanwhile, Gardner is so secure he can have the combustible governor of New Jersey, Chris Christie, in for a spin around the state. Fresh off his "sit down and shut up" tirade at a heckler and from setting his own quarantine policy, Christie looked on top of the world welcoming a new senator into the fold.


Source
Vegetarian
Profile Joined October 2008
119 Posts
November 01 2014 20:02 GMT
#27684
On November 02 2014 04:49 Nyxisto wrote:
Would you mind giving us an example of this Utopian free-market you are advocating or are you just speculating here? Also I have the feeling that someone has invited Noam Chomsky's fanclub into this thread, no matter what topic every second post is some kind of anarcho-libertarian fantasy scenario.


The USA once had the highest standard of living in the world. It achieved this when the market was mostly free, and income taxes did not exist. I am not speculating I am using logic to explain capitalism. This is not a new idea, but an old idea that many seem to have trouble grasping. What is wrong with arguing for the system that results in the highest standard of living? Why are you attached to the idea that standard of living should be reduced to allow for the central planning of politicians?
Simberto
Profile Blog Joined July 2010
Germany11549 Posts
November 01 2014 20:05 GMT
#27685
Yeah, the main problem with the US healthcare system is not too much or not enough regulation, it's just that the whole system sucks donkey balls compared to pretty much any other country. And americans have this weird tendency of not even trying to learn from others, and instead trying to add more ducttape to the system that is utterly broken in an attempt to make it work.
Gorsameth
Profile Joined April 2010
Netherlands21772 Posts
November 01 2014 20:05 GMT
#27686
On November 02 2014 05:02 Vegetarian wrote:
Show nested quote +
On November 02 2014 04:49 Nyxisto wrote:
Would you mind giving us an example of this Utopian free-market you are advocating or are you just speculating here? Also I have the feeling that someone has invited Noam Chomsky's fanclub into this thread, no matter what topic every second post is some kind of anarcho-libertarian fantasy scenario.


The USA once had the highest standard of living in the world. It achieved this when the market was mostly free, and income taxes did not exist. I am not speculating I am using logic to explain capitalism. This is not a new idea, but an old idea that many seem to have trouble grasping. What is wrong with arguing for the system that results in the highest standard of living? Why are you attached to the idea that standard of living should be reduced to allow for the central planning of politicians?

Source? Because I very much doubt that the US has ever had the highest standard at any point in its existence, other then perhaps during ww2 when Europe was to busy being occupied to worry about it.
It ignores such insignificant forces as time, entropy, and death
Nyxisto
Profile Joined August 2010
Germany6287 Posts
Last Edited: 2014-11-01 20:06:48
November 01 2014 20:06 GMT
#27687
Are you kidding me? During the "golden times" of the US economy, namely the post war period, the US pretty much had the highest taxation in its history.

http://nickgogerty.typepad.com/.a/6a00d83454b17a69e20115711eec3b970b-pi
TheTenthDoc
Profile Blog Joined February 2011
United States9561 Posts
Last Edited: 2014-11-01 20:10:29
November 01 2014 20:07 GMT
#27688
The one thing no one in politics wants to admit about healthcare-as-market is this: the more functional the market, the greater the healthcare disparities between rich and poor. This is obvious and simple. The central target of (actually enacted) reform from both right and left in the U.S. has actually been to make healthcare less of a market, as much as this runs counter to their sentiments.

The day someone in Washington actually admits that they believe rich people should live longer than poor people, though, is the day hell freezes over.
IgnE
Profile Joined November 2010
United States7681 Posts
November 01 2014 20:18 GMT
#27689
On November 02 2014 04:49 Nyxisto wrote:
Would you mind giving us an example of this Utopian free-market you are advocating or are you just speculating here? Also I have the feeling that someone has invited Noam Chomsky's fanclub into this thread, no matter what topic every second post is some kind of anarcho-libertarian fantasy scenario.



I don't think Chomsky endorses what you think he endorses. None of the posters in the last few pages are especially redolent of Chomsky.
The unrealistic sound of these propositions is indicative, not of their utopian character, but of the strength of the forces which prevent their realization.
WhiteDog
Profile Blog Joined November 2010
France8650 Posts
Last Edited: 2014-11-01 20:44:05
November 01 2014 20:22 GMT
#27690
On November 02 2014 04:43 Vegetarian wrote:
Show nested quote +
On November 02 2014 04:10 WhiteDog wrote:
On November 02 2014 03:50 Vegetarian wrote:
What is pareto efficiency? Perhaps you can address my arguments instead of invoking straw men. I am referring to the efficient use of earth's resources based on the concept of supply and demand. (http://en.wikipedia.org/wiki/Supply_and_demand)

I've adressed your arguments, even took the time to give you an exemple of non pareto efficient equilibrium that is, to me, better for a society than a market efficiency (pareto efficience is the kind of efficience you get when the market reach equilibrium...). It seems like you an incomplete knowledge on the subject, but if you read the supply and demand page on wiki, you'd know that "The model of prices being determined by supply and demand assumes perfect competition". The "efficiency" of the market (through the equilibrium) is true only if the competition is perfect, which is why I told you it's an illusion. Also, from the perfect competition page : "As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures."

Inequality is minimized in a free market because it increases the standard of living for all people. Inequality is maximized with central planning because this ensures that more of societies resources are wasted. Competition is never perfect, it only needs to be free to result in a rising standard of living.

That's some beautiful bullshit. Do you have any proof of that ?

Can you provide an argument for why the free market cannot provide any of the products or services that you list? Can you provide an argument that a centrally planned monopoly on select goods or services results in a higher living standard and not a waste of resources? If a product or service cannot be supported by the free market then why do you think you know better as to how societies resources should be distributed? This mentality is what creates inequality.

I've provided plenty arguments. Try reading the "public goods" page, "eternality" and "information asymmetry" on wiki maybe ? It's a good start.

Healthcare in UK is NOT a competitive environment : it is completly public and financed through taxation (http://en.wikipedia.org/wiki/Healthcare_in_England)
Healthcare in England is mainly provided by England's public health service, the National Health Service, that provides healthcare to all permanent residents of the United Kingdom that is free at the point of use and paid for from general taxation. Since health is a devolved matter, there are differences with the provisions for healthcare elsewhere in the United Kingdom.[1] Though the public system dominates healthcare provision in England, private health care and a wide variety of alternative and complementary treatments are available for those willing to pay.

Same for France (http://en.wikipedia.org/wiki/Health_care_in_France)
The French health care system is one of universal health care largely financed by government national health insurance. In its 2000 assessment of world health care systems, the World Health Organization found that France provided the "close to best overall health care" in the world.[1] In 2011, France spent 11.6% of GDP on health care, or US$4,086 per capita,[2] a figure much higher than the average spent by countries in Europe but less than in the US. Approximately 77% of health expenditures are covered by government funded agencies.[3]


You have not addressed my arguments. Perhaps you should reread my posts. Calling a perfectly logical argument, "bullshit" is not a counter argument. Learn to use logic or you will always fail in debate.

I have explained to you that competition does not result in equilibrium. You are arguing against a straw man. Competition does not need to be perfect for a free market to raise standard of living more than any other system. You are misunderstanding what competition means and how it relates to using resources to manufacture a product or provide a service. I have provided a coherent logical explanation that I suggest you read in my prior post.

You have not made an argument as to why a free market could not provide certain products or services or why the government is better suited to provide any of them. If you cannot do so then just admit it. I could list a bunch of articles for you to read, but I am having a discussion with you about I subject I understand. The same cannot be said of you.

You seem very confused about the United States healthcare system. If you are going to argue that it is a free market then I wish you luck and await your argument.

You seem to be very confused about reading others. If you don't understand that a completly public system, like in UK or France, is less competitive than the US system I don't know what to say. It's a perfect exemple as to why increasing competition can lead to bad results.

Your point is that by increasing competition, you'll increase the standard of living, but you don't seem to understand that many things are not taken into consideration by the market. If you increase competition in energy production, you might have bad results : producing cheaper energy, and more energy, can have bad results on environment / energy efficiency in the production of other goods, etc. When you use your car, the cost of the gaz is the only cost you take into account, while the usage of your car has other impact on the society as a whole - by emitting CO2 and increasing asthma for exemple. In the same way, giving a better education to everyone is not market efficient, but it has great positive impact on the production (people work better when they are educated you know). An increasing competition can also lead to the total domination of a few firm on a market, if you let firms to whatever they please.

Finally, when you say that the market, through competition, leads to an efficient allocation of ressource, you have to BACK IT UP with either a logical argument or empirical data, which is what the supply and demand model is made for.
Economists showed that under certain conditions, the market leads an efficient (pareto efficient) allocation of ressource : this efficient allocation ressource is possible at one point, which is the equilibrium. This efficiency is not efficient in term of inequalities and such, in fact free marketist don't care about inequalities and there's no logical argument to say that a market lead to less inequalities. A non competitive market does not lead to an efficient allocation of ressource (because price is not defined by the confrontation of offer and demand in many situations) - which is the case for monopole, monopsone, oligopole, etc.
If the market does not follow those conditions, then it's not perfectly competitive market and thus does not lead to an optimal allocation of ressource. To say it in a simplier way, you need certain condition for a market to reach its equilibrium, which is the point that egalize offer and demand and that is the most efficient. There are no reason to believe that a non perfectly competitive market is necessarily more efficient than a government program : they are both not optimally efficient.

It really depend on the type of market : there are many markets in the world, not all the same. The energy market, the labor market, the banana market or the shoe market do not have the same externality and impact on the standard of living. Forcing for a higher competitive environment in all those market, without taking into consideration the complexity and the diversity of those market is stupid. Putting a chinese worker and an european worker in competition is also stupid : if it were not for the superior infrastructure and education of european workers, the fact that there are almost no laws in china to protect the worker or no laws to protect the environment, would inevitably lead to the domination of the chinese worker even if china's labor market has terrible effect on the standard of living.
"every time WhiteDog overuses the word "seriously" in a comment I can make an observation on his fragile emotional state." MoltkeWarding
Vegetarian
Profile Joined October 2008
119 Posts
Last Edited: 2014-11-01 21:05:21
November 01 2014 20:49 GMT
#27691
On November 02 2014 05:06 Nyxisto wrote:
Are you kidding me? During the "golden times" of the US economy, namely the post war period, the US pretty much had the highest taxation in its history.

http://nickgogerty.typepad.com/.a/6a00d83454b17a69e20115711eec3b970b-pi


The post world war 2 period was not the golden time of the USA economy if you adjust for standard of living. Take a look at the year 1913 for the countries listed:
http://en.wikipedia.org/wiki/List_of_regions_by_past_GDP_(PPP)_per_capita#World_1.E2.80.932003_.28Maddison.29

Further, taxation during the period you are referring to was lower than it is currently. The top rate was the highest during this period, but very few people paid the top rate. Not to mention, the majority of business was conducted solely with cash during this period while allowable deductions were also greater. It is more informative to look not only at the highest tax rate, but at all aspects surrounding taxation during a given period in order to come to an accurate conclusion.
oneofthem
Profile Blog Joined November 2005
Cayman Islands24199 Posts
November 01 2014 21:10 GMT
#27692
market defined by competition has a number of assumptions on the nature of the participants and their available options. many of these are not met by healthcare, so here private is not equal to more competitive. nor does this connection hold in many other situations
We have fed the heart on fantasies, the heart's grown brutal from the fare, more substance in our enmities than in our love
WhiteDog
Profile Blog Joined November 2010
France8650 Posts
Last Edited: 2014-11-01 21:28:13
November 01 2014 21:23 GMT
#27693
On November 02 2014 06:10 oneofthem wrote:
market defined by competition has a number of assumptions on the nature of the participants and their available options. many of these are not met by healthcare, so here private is not equal to more competitive. nor does this connection hold in many other situations

Almost no sector perfectly match a perfect markets defined as economists. The agriculture is one of the few exemple, and it's considered a disease because a perfect market have low profit perspectives. That the healthcare system is very far from it does not makes all other market more "competitive" oneofsanto.
And when people ask for "more competition", especially neoliberal, they usually talk about the legislation on the labor market and protectionnism measure, which usually comes with huge problems in regard to the "competition" aspect of things.
"every time WhiteDog overuses the word "seriously" in a comment I can make an observation on his fragile emotional state." MoltkeWarding
Vegetarian
Profile Joined October 2008
119 Posts
November 01 2014 21:26 GMT
#27694
On November 02 2014 05:22 WhiteDog wrote:
Show nested quote +
On November 02 2014 04:43 Vegetarian wrote:
On November 02 2014 04:10 WhiteDog wrote:
On November 02 2014 03:50 Vegetarian wrote:
What is pareto efficiency? Perhaps you can address my arguments instead of invoking straw men. I am referring to the efficient use of earth's resources based on the concept of supply and demand. (http://en.wikipedia.org/wiki/Supply_and_demand)

I've adressed your arguments, even took the time to give you an exemple of non pareto efficient equilibrium that is, to me, better for a society than a market efficiency (pareto efficience is the kind of efficience you get when the market reach equilibrium...). It seems like you an incomplete knowledge on the subject, but if you read the supply and demand page on wiki, you'd know that "The model of prices being determined by supply and demand assumes perfect competition". The "efficiency" of the market (through the equilibrium) is true only if the competition is perfect, which is why I told you it's an illusion. Also, from the perfect competition page : "As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures."

Inequality is minimized in a free market because it increases the standard of living for all people. Inequality is maximized with central planning because this ensures that more of societies resources are wasted. Competition is never perfect, it only needs to be free to result in a rising standard of living.

That's some beautiful bullshit. Do you have any proof of that ?

Can you provide an argument for why the free market cannot provide any of the products or services that you list? Can you provide an argument that a centrally planned monopoly on select goods or services results in a higher living standard and not a waste of resources? If a product or service cannot be supported by the free market then why do you think you know better as to how societies resources should be distributed? This mentality is what creates inequality.

I've provided plenty arguments. Try reading the "public goods" page, "eternality" and "information asymmetry" on wiki maybe ? It's a good start.

Healthcare in UK is NOT a competitive environment : it is completly public and financed through taxation (http://en.wikipedia.org/wiki/Healthcare_in_England)
Healthcare in England is mainly provided by England's public health service, the National Health Service, that provides healthcare to all permanent residents of the United Kingdom that is free at the point of use and paid for from general taxation. Since health is a devolved matter, there are differences with the provisions for healthcare elsewhere in the United Kingdom.[1] Though the public system dominates healthcare provision in England, private health care and a wide variety of alternative and complementary treatments are available for those willing to pay.

Same for France (http://en.wikipedia.org/wiki/Health_care_in_France)
The French health care system is one of universal health care largely financed by government national health insurance. In its 2000 assessment of world health care systems, the World Health Organization found that France provided the "close to best overall health care" in the world.[1] In 2011, France spent 11.6% of GDP on health care, or US$4,086 per capita,[2] a figure much higher than the average spent by countries in Europe but less than in the US. Approximately 77% of health expenditures are covered by government funded agencies.[3]


You have not addressed my arguments. Perhaps you should reread my posts. Calling a perfectly logical argument, "bullshit" is not a counter argument. Learn to use logic or you will always fail in debate.

I have explained to you that competition does not result in equilibrium. You are arguing against a straw man. Competition does not need to be perfect for a free market to raise standard of living more than any other system. You are misunderstanding what competition means and how it relates to using resources to manufacture a product or provide a service. I have provided a coherent logical explanation that I suggest you read in my prior post.

You have not made an argument as to why a free market could not provide certain products or services or why the government is better suited to provide any of them. If you cannot do so then just admit it. I could list a bunch of articles for you to read, but I am having a discussion with you about I subject I understand. The same cannot be said of you.

You seem very confused about the United States healthcare system. If you are going to argue that it is a free market then I wish you luck and await your argument.

You seem to be very confused about reading others. If you don't understand that a completly public system, like in UK or France, is less competitive than the US system I don't know what to say. It's a perfect exemple as to why increasing competition can lead to bad results.

Your point is that by increasing competition, you'll increase the standard of living, but you don't seem to understand that many things are not taken into consideration by the market. If you increase competition in energy production, you might have bad results : producing cheaper energy, and more energy, can have bad results on environment / energy efficiency in the production of other goods, etc. When you use your car, the cost of the gaz is the only cost you take into account, while the usage of your car has other impact on the society as a whole - by emitting CO2 and increasing asthma for exemple. In the same way, giving a better education to everyone is not market efficient, but it has great positive impact on the production (people work better when they are educated you know). An increasing competition can also lead to the total domination of a few firm on a market, if you let firms to whatever they please.

Finally, when you say that the market, through competition, leads to an efficient allocation of ressource, you have to BACK IT UP with either a logical argument or empirical data, which is what the supply and demand model is made for.
Economists showed that under certain conditions, the market leads an efficient (pareto efficient) allocation of ressource : this efficient allocation ressource is possible at one point, which is the equilibrium. This efficiency is not efficient in term of inequalities and such, in fact free marketist don't care about inequalities and there's no logical argument to say that a market lead to less inequalities. A non competitive market does not lead to an efficient allocation of ressource (because price is not defined by the confrontation of offer and demand in many situations) - which is the case for monopole, monopsone, oligopole, etc.
If the market does not follow those conditions, then it's not perfectly competitive market and thus does not lead to an optimal allocation of ressource. To say it in a simplier way, you need certain condition for a market to reach its equilibrium, which is the point that egalize offer and demand and that is the most efficient. There are no reason to believe that a non perfectly competitive market is necessarily more efficient than a government program : they are both not optimally efficient.

It really depend on the type of market : there are many markets in the world, not all the same. The energy market, the labor market, the banana market or the shoe market do not have the same externality and impact on the standard of living. Forcing for a higher competitive environment in all those market, without taking into consideration the complexity and the diversity of those market is stupid. Putting a chinese worker and an european worker in competition is also stupid : if it were not for the superior infrastructure and education of european workers, the fact that there are almost no laws in china to protect the worker or no laws to protect the environment, would inevitably lead to the domination of the chinese worker even if china's labor market has terrible effect on the standard of living.


On healthcare you are missing the point completely. I understand that you live in a country with socialized medicine that is not a free market. That does not mean that the USA's facist system is an example of a highly competitive free market.

The market takes into consideration the factors that you believe it doesn't. People make a choice in the market whether to buy products that pollute, or whether to pay extra for products that are environmentally friendly. Typically as standard of living increases in a given market, more people desire products that don't pollute, or that donate some profits to charity. The externalities that you mention are best handled by allowing standard of living to increase the most. This is achieved with a pure free market. You seem to be under the delusion that these problems are best handled by allowing a small group of politicians total power in determining how a problem is addressed with money that they stole from the marketplace.

Furthermore, education is a product. Schools compete against one and other to provide the education that will yield the highest paying jobs for their consumers. In the USA where both public and private schools exist, the public schools do far worse than private schools despite the central planners often spending more per student in public school then a comparable private school costs to attend.

I have previously provided a logical argument complete with an example to illustrate how competition within a market increases standard of living by reducing wasted resources of which earth has a limited amount. I will quote it here since you seemed to have missed it:

"For example, Bob decides he wants to sell pizza. He spends his resources on a restaurant and attempts to sell pizza. Bob incurs costs in order to run his new business. Lets pretend he has to pay 1000$ a month on rent for his restaurant,1000$ a month on ingredients, and 1000$ a month on staff for his restaurant. If Bob is able to sell 3000$ a month or more in pizza then his product/service is correctly utilizing societies scarce resources to provide a product or service that is voted on to be sustained by the given market. If Bob is only able to sell 2000$ a month in pizza then the market would be telling him that he is unable to utilize societies scarce resources for this endeavor. The longer Bob chose to carry on offering his product at a loss the more of his own resources he would lose. Eventually if Bob didn't change course he would lose all of his resources to people that were operating at a profit. This ensures that if someone is wasting societies resources they are limited to wasting only the amount which they can afford at market prices.

Equilibrium is never reached in a free market. The whole point of competition is to allow resources to be used more efficiently, indefinitely, by anyone who has the resources to try. Competition causes standard of living to increase because it ensures that scarce resources are used in the most efficient manner. This results in the highest quality and lowest priced products because only the most efficient producers can succeed when forced to compete. This also results in the best utilization of earths resources. More products and services from a finite pool of resources means a higher standard of living for all." (Vegetarian)
JonnyBNoHo
Profile Joined July 2011
United States6277 Posts
November 01 2014 21:27 GMT
#27695
On November 02 2014 06:23 WhiteDog wrote:
Show nested quote +
On November 02 2014 06:10 oneofthem wrote:
market defined by competition has a number of assumptions on the nature of the participants and their available options. many of these are not met by healthcare, so here private is not equal to more competitive. nor does this connection hold in many other situations

Almost no sector perfectly match a perfect markets defined as economists. The agriculture is one of the few exemple, and it's considered a disease because a perfect market have low profit perspectives. That the healthcare system is very far from it does not makes all other market more "competitive" oneofsanto.
And when people ask for "more competition", especially neoliberal, they usually talk about the legislation on the labor market, which is very far from a competitive market.

Competition is a continuum. You don't need to have a market that fits the prefect competition model for it to be competitive.
WhiteDog
Profile Blog Joined November 2010
France8650 Posts
Last Edited: 2014-11-01 21:46:01
November 01 2014 21:28 GMT
#27696
On November 02 2014 06:27 JonnyBNoHo wrote:
Show nested quote +
On November 02 2014 06:23 WhiteDog wrote:
On November 02 2014 06:10 oneofthem wrote:
market defined by competition has a number of assumptions on the nature of the participants and their available options. many of these are not met by healthcare, so here private is not equal to more competitive. nor does this connection hold in many other situations

Almost no sector perfectly match a perfect markets defined as economists. The agriculture is one of the few exemple, and it's considered a disease because a perfect market have low profit perspectives. That the healthcare system is very far from it does not makes all other market more "competitive" oneofsanto.
And when people ask for "more competition", especially neoliberal, they usually talk about the legislation on the labor market, which is very far from a competitive market.

Competition is a continuum. You don't need to have a market that fits the prefect competition model for it to be competitive.

You need a market that fits the model for it to be optimal and efficient in ressource allocation.

Considering that market are, by necessity, far from "perfect", there's no ground on which we can say that increasing competition in all markets necessarily leads to an increase in efficiency. It depends on every market structure. Good economics policy is not about trying to push all markets toward a perfect competition, it's about knowing and facing the diversity of markets with a diversity of response.

On November 02 2014 06:26 Vegetarian wrote:
Show nested quote +
On November 02 2014 05:22 WhiteDog wrote:
On November 02 2014 04:43 Vegetarian wrote:
On November 02 2014 04:10 WhiteDog wrote:
On November 02 2014 03:50 Vegetarian wrote:
What is pareto efficiency? Perhaps you can address my arguments instead of invoking straw men. I am referring to the efficient use of earth's resources based on the concept of supply and demand. (http://en.wikipedia.org/wiki/Supply_and_demand)

I've adressed your arguments, even took the time to give you an exemple of non pareto efficient equilibrium that is, to me, better for a society than a market efficiency (pareto efficience is the kind of efficience you get when the market reach equilibrium...). It seems like you an incomplete knowledge on the subject, but if you read the supply and demand page on wiki, you'd know that "The model of prices being determined by supply and demand assumes perfect competition". The "efficiency" of the market (through the equilibrium) is true only if the competition is perfect, which is why I told you it's an illusion. Also, from the perfect competition page : "As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures."

Inequality is minimized in a free market because it increases the standard of living for all people. Inequality is maximized with central planning because this ensures that more of societies resources are wasted. Competition is never perfect, it only needs to be free to result in a rising standard of living.

That's some beautiful bullshit. Do you have any proof of that ?

Can you provide an argument for why the free market cannot provide any of the products or services that you list? Can you provide an argument that a centrally planned monopoly on select goods or services results in a higher living standard and not a waste of resources? If a product or service cannot be supported by the free market then why do you think you know better as to how societies resources should be distributed? This mentality is what creates inequality.

I've provided plenty arguments. Try reading the "public goods" page, "eternality" and "information asymmetry" on wiki maybe ? It's a good start.

Healthcare in UK is NOT a competitive environment : it is completly public and financed through taxation (http://en.wikipedia.org/wiki/Healthcare_in_England)
Healthcare in England is mainly provided by England's public health service, the National Health Service, that provides healthcare to all permanent residents of the United Kingdom that is free at the point of use and paid for from general taxation. Since health is a devolved matter, there are differences with the provisions for healthcare elsewhere in the United Kingdom.[1] Though the public system dominates healthcare provision in England, private health care and a wide variety of alternative and complementary treatments are available for those willing to pay.

Same for France (http://en.wikipedia.org/wiki/Health_care_in_France)
The French health care system is one of universal health care largely financed by government national health insurance. In its 2000 assessment of world health care systems, the World Health Organization found that France provided the "close to best overall health care" in the world.[1] In 2011, France spent 11.6% of GDP on health care, or US$4,086 per capita,[2] a figure much higher than the average spent by countries in Europe but less than in the US. Approximately 77% of health expenditures are covered by government funded agencies.[3]


You have not addressed my arguments. Perhaps you should reread my posts. Calling a perfectly logical argument, "bullshit" is not a counter argument. Learn to use logic or you will always fail in debate.

I have explained to you that competition does not result in equilibrium. You are arguing against a straw man. Competition does not need to be perfect for a free market to raise standard of living more than any other system. You are misunderstanding what competition means and how it relates to using resources to manufacture a product or provide a service. I have provided a coherent logical explanation that I suggest you read in my prior post.

You have not made an argument as to why a free market could not provide certain products or services or why the government is better suited to provide any of them. If you cannot do so then just admit it. I could list a bunch of articles for you to read, but I am having a discussion with you about I subject I understand. The same cannot be said of you.

You seem very confused about the United States healthcare system. If you are going to argue that it is a free market then I wish you luck and await your argument.

You seem to be very confused about reading others. If you don't understand that a completly public system, like in UK or France, is less competitive than the US system I don't know what to say. It's a perfect exemple as to why increasing competition can lead to bad results.

Your point is that by increasing competition, you'll increase the standard of living, but you don't seem to understand that many things are not taken into consideration by the market. If you increase competition in energy production, you might have bad results : producing cheaper energy, and more energy, can have bad results on environment / energy efficiency in the production of other goods, etc. When you use your car, the cost of the gaz is the only cost you take into account, while the usage of your car has other impact on the society as a whole - by emitting CO2 and increasing asthma for exemple. In the same way, giving a better education to everyone is not market efficient, but it has great positive impact on the production (people work better when they are educated you know). An increasing competition can also lead to the total domination of a few firm on a market, if you let firms to whatever they please.

Finally, when you say that the market, through competition, leads to an efficient allocation of ressource, you have to BACK IT UP with either a logical argument or empirical data, which is what the supply and demand model is made for.
Economists showed that under certain conditions, the market leads an efficient (pareto efficient) allocation of ressource : this efficient allocation ressource is possible at one point, which is the equilibrium. This efficiency is not efficient in term of inequalities and such, in fact free marketist don't care about inequalities and there's no logical argument to say that a market lead to less inequalities. A non competitive market does not lead to an efficient allocation of ressource (because price is not defined by the confrontation of offer and demand in many situations) - which is the case for monopole, monopsone, oligopole, etc.
If the market does not follow those conditions, then it's not perfectly competitive market and thus does not lead to an optimal allocation of ressource. To say it in a simplier way, you need certain condition for a market to reach its equilibrium, which is the point that egalize offer and demand and that is the most efficient. There are no reason to believe that a non perfectly competitive market is necessarily more efficient than a government program : they are both not optimally efficient.

It really depend on the type of market : there are many markets in the world, not all the same. The energy market, the labor market, the banana market or the shoe market do not have the same externality and impact on the standard of living. Forcing for a higher competitive environment in all those market, without taking into consideration the complexity and the diversity of those market is stupid. Putting a chinese worker and an european worker in competition is also stupid : if it were not for the superior infrastructure and education of european workers, the fact that there are almost no laws in china to protect the worker or no laws to protect the environment, would inevitably lead to the domination of the chinese worker even if china's labor market has terrible effect on the standard of living.


On healthcare you are missing the point completely. I understand that you live in a country with socialized medicine that is not a free market. That does not mean that the USA's facist system is an example of a highly competitive free market.

The market takes into consideration the factors that you believe it doesn't. People make a choice in the market whether to buy products that pollute, or whether to pay extra for products that are environmentally friendly. Typically as standard of living increases in a given market, more people desire products that don't pollute, or that donate some profits to charity. The externalities that you mention are best handled by allowing standard of living to increase the most. This is achieved with a pure free market. You seem to be under the delusion that these problems are best handled by allowing a small group of politicians total power in determining how a problem is addressed with money that they stole from the marketplace.

Yeah you don't understand the fact that people in a market makes choices based on price, and price do not take environment into consideration ? In a market, price are informations.
"every time WhiteDog overuses the word "seriously" in a comment I can make an observation on his fragile emotional state." MoltkeWarding
Vegetarian
Profile Joined October 2008
119 Posts
November 01 2014 21:33 GMT
#27697
On November 02 2014 06:10 oneofthem wrote:
market defined by competition has a number of assumptions on the nature of the participants and their available options. many of these are not met by healthcare, so here private is not equal to more competitive. nor does this connection hold in many other situations


Why are healthcare products and services different than the product of food or the service of automobile repair? In your view why would the product and service of healthcare yield a better outcome if they are centrally planned as opposed to a system in which anyone is free to compete and provide healthcare products and services to willing consumers in voluntary transactions.

Will a centrally planned healthcare system achieve the same level of innovation and prices as a competitive free market system?
nunez
Profile Blog Joined February 2011
Norway4003 Posts
November 01 2014 21:43 GMT
#27698
you are asking about the difference between an apple and health insurance?
conspired against by a confederacy of dunces.
Vegetarian
Profile Joined October 2008
119 Posts
November 01 2014 21:46 GMT
#27699
On November 02 2014 06:43 nunez wrote:
you are asking about the difference between an apple and health insurance?


Yes, I am asking the difference between the product of food which is required by all humans to sustain life and the product of health care which is not required by humans to sustain life. If the former is best provided by a free market then why would the later be better provided by a centrally planned monopoly? Or are you also arguing that food should be provided by the government?
Nyxisto
Profile Joined August 2010
Germany6287 Posts
November 01 2014 21:48 GMT
#27700
Because if you have a heart attack you can't say "drive me to that hospital 20 miles away it's cheaper!" if you want to buy an apple you can say "hey I'll go to that store it sells cheaper apples". This isn't exactly rocket science
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