Showing posts with label capitalism. Show all posts
Showing posts with label capitalism. Show all posts

Monday, February 23, 2009

Comic: market regulation


Market regulations impose costs on businesses. Since most regulators have no experiences with the kind of business they are supposed to regulate, the results can be expected to be tedious and expensive while at the same time creating a legal minefield. Worse even, since the cost of compliance does not scale with business size, huge corporations gain big advantages over their smaller competitors. That's why big business is generally in favor of regulation; you'll find their lobbyists near most regulatory committees.

Regulations do not help "tame the market". They glue together the legs of small and swift competitors so that corporate giants can easily crush them.

(source: Cartoonstock)

Monday, February 16, 2009

Comic: capitalists and competition


It is a common belief that big business is the driving force behind free trade and free market ideology. Not too rarely, that's wrong. Large corporations tend to lobby for state regulation of the market and protectionist tariffs to secure their established position and keep their own profits high due to a lack of competitors. That's why free markets do not equal the enslavement of mankind by capitalists, but much rather liberate humanity from the shackles that some businessmen want to impose on it.

(source: Cartoonstock)