University of California votes to restore affirmative action nearly 24 years after it was outlawed

[nononono]

Let's see your take?

 

[Bruddah IZ]

There is no such thing as a perfect free market but is something approaches 80 or 90% free, we generally call it free. Free market benefits are simple, say you have a farmer makes cow milk. Another person a carpenter. The farmer have excess milk and the carpenter has excess furniture. They should both be allowed to trade and trade benefits both sides as they trade what they have excess with what they need. Government should stay out and maximize this trade until both parties voluntary stops. This ensures the best allocation of resources.

That's what is describe in the early chapters of any economics textbook. Sounds good in theory.

The practice of what you just described works well too. My in laws have cattle. Belted Galloways. A hardy bunch that can handle the cold. The poop is good for the paddock too. When the grass is eaten up in one paddock, they move the cattle to the next. As far as the carpenter is concerned, my brother in law builds beautiful straw bail homes and converts all his cars to veggie oil that he collects from the local Mc Donalds in Geraldine on the South Island of NZ. New Zealand is typically in the top 3 Countries with the highest degree of Economic Freedom.

 

[Bruddah IZ]

However, right away we can see problems called market failures:

1. Externalities. The cow farmer had his cows eat up all the "free" grass on our village hills and now our village lost all its nice green pastures. His cows also poop all over and making our natural habitat dirty. These causes the rest of us to not be able to enjoy our hills. These cost aren't factored into the farmer's cost of raising cows because they were available to him for free.

2. Game theory. The carpenter has non-perishable furniture. The farmer has perishable cow milk which he needs to trade in just a few days. The carpenter having bigger leverage can choose to hold out and not trade until the farmer;s time runs out with his expired milk. This "new" price is dictated by game theory (how well the carpenter plays his cards) and not free market supply and demand.

and i can probably list about 10 more reasons but will stop here.

The problem is not market failures. The biggest problem is that markets are not allowed to fail. Bail outs and QE have been the cause of economic crisis back to the days of the Romans. You should start clear back to page 1 of my Essential Economics thread.

Otherwise you're just babbling. Trying to sound smart while doing the exact opposite.

 

[Bruddah IZ]

Let's see your take?

Oh please Huspola. You're not smart enough to know the first thing about business. Blam is just your speed though. Run along now.

 

[Hüsker Dü]

Non-sequitur

 

[nononono]

Non-sequitur

F#$k it doesn't......that shows how stupid you are...!