Ialdabaoth -> RE: Government health care is GREAT! (10/4/2009 4:59:02 PM)
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ORIGINAL: Archer Pharma has a pretty high profit margin. The question is how high is too high. Is 15% too high for an industry with that level of risk to capital? Is 10% fair with that level of risk and investment? Is 5% fair with that level of risk and investment? Hey, I got a question. Why is it every time I talk about "fair wages" and "I'm being exploited!", the Randians say "no one ever said life is fair!", but when a big corporation's profit margin is at risk, all the sudden the word "fair" starts wheeling out? How's this sound: The moment ANY industry becomes about "profit" instead of "benefit", that industry has become corrupt and needs regulation. Profit incentive is a STUPID way to run an economy. You can "invisible hand" this and "free market" that, but the fact remains that modern economic theory STILL assumes a rational actor, and research psychology has PROVEN, over and over again, that we don't make economic decisions rationally. IF WE DID, MARKETING WOULD NOT WORK. Here's a fun rational argument for you: If people were purely rational actors, then modern media-marketing campaigns would not work. If people were purely rational actors, then they would not spend money on media-marketing campaigns that did not work. THEREFORE Either, media-marketing campaigns do not work, and therefore people are not purely rational actors, OR, modern media-marketing campaigns DO work, and therefore people are not purely rational actors. EITHER WAY the fundamental basis for "free market" economics is flawed. "Free market" approaches work great in the following narrow situations: 1. All products/goods within the market must have a reasonably elastic demand - i.e., there can't be any life-or-death needs 2. All actors must be capable of making RATIONAL, INFORMED decisions about all the things they could do with their money - i.e., no emotionally manipulative marketing, no "hidden deals" 3. All externalities must be factored into the costs of all goods. Any of those edge cases come up, and you need some kind of regulation. And yes, I'm sick of Big Government. But I'm just as sick of Big Business. And it seems the only solution is to set them at each other's throats, instead of the current situation - where we let them tag-team the little guy.
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