2012-08-28

OSW Have It Backwards: Persuasion vs. Coercion

Capitalism is not to blame. It's also irrational to hear politicians misdiagnose and enact "regulations" in feeble attempts to "control" the free-market.

An explanation here.

"...Only in this way, they believe, can war and social disharmony in the world be eradicated forever -- and only then will the "economic power" of corporations be stifled.

The Left's fear seems excessive or misplaced. Why do I say that? Neither corporations nor any other business in the market can actually force (use violence on) people to make us deal with them, buy from them, or work for them. It's all by voluntary choice and consensual contract. Whatever their faults, businesses -- even big corporations -- have to rely on persuasion -- advertising, marketing, attractive alternative pricing, new products, fancy packaging, etc, not coercion.

As long as a businessman confines his behavior to purely market means (non-violent persuasion), no one is forced at the point of a gun to deal with him. Any coercive power a corporation may have comes from its association with or privileges from . . . . ta-da! . . . interventionist government (political statism)!"

2 comments:

  1. Well, partly agree. We don't need more government, but part of the protest against Wall Street has been precisely (even when the protesters weren't conscious of it) due to the fact that big corporation are generally not free market entities. Remember TARP, the bailouts of the banks and later, General Motors? There are so many state granted privileges (including intellectual property law and copyright) that the free market in modern capitalism is a fiction.

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  2. No argument here about what you say. However, OSW asks for government to "fix" this - which to me, is a laughable joke.

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