PLAYER57832 wrote:BigBallinStalin wrote:
Yet, companies and capitalism and market economies benefit society...
No, actually they don't necessarily benefit society. Not without controls, they don't.
I am not saying capitalism is bad or that it is useless, but it is not he panacea that many here seem to want to believe.
Government funded research is as much, and in modern times perhaps more the reason for advances than capitalism. That is because we have passed the "low hanging fruit", where people could make a new discovery and instantly profit. There are still exceptions, but most things now require long, painstaking research that will only occasionally yield tangible results. (the move to microcomputers and software engineering was one exception.. though that, too depended on prior government research)
With the money stolen via taxation, who knows what that money would've created in the private sector.
Was spending billions (at the expense of the "social good") to launch a space ship to the moon faster than the Soviet Union really necessary? No. The US federal government had to beat the Soviets by taking its own people's money to fund something faster than necessary. For what purpose? Mostly for promoting nationalist sentiments (gotta have people feeling good about having their money stolen).
Also, if the US funds a particular field of research, then it isn't necessary for the private sector to do so, assuming they get the share of the spoils. So you can't proclaim that the private sector couldn't provide because the government has crowded out, and substituted, the need for R&D in particular areas or on particular projects.
Also, for your point to be justified, you would have to ascertain what specific portion of the government-funded R&D was really necessary. You merely lumped all defense spending in there, and said it works, and gosh darnit, the private sector and the people really needed it!
"Low hanging fruit." Yeah, Tyler Cowen talks about this, so I wonder if you're indirectly discussing his views... You do know that the "low-hanging fruit" refers to the decreasing benefits of public goods on the margin, right? (i.e. the diminishing marginal utility of further funding education and health care). You're defeating yourself with your own point...
PLAYER57832 wrote:To bring up an example I have brought up before, look at dishwashers and refridgerators. At first, it was great.. and you saw improvements toward being frost-free, freezer additions, etc. Then suddenly everyone had one. Refridgerators, as far as appliance companies were concerned were lasting too long. They brought up new refridgerators with new "features".. colors, shelving styles, etc. Sometimes there were real innovations,but the basic technology was already established. Many of those old refridgerators, built to last are still around. The new ones? They have a lifespan of 5 years. Moreover, many don't even last long.. and you often have to pay as much or more for a service agreement (definitely if you need service and don't have an agreement). Did all this really give us better refridgerators? No. I would be just as happy with the ones my grandmother and mother had. I don't, however have that option. I did buy used ones down in Mississippi, but here they just are not available. And, repairing the old ones cost as much as getting a new one. Is that reasonable ..that the parts to repair a machine should cost as much as the machine itself? Not really.
We had this debate, but you conveniently forgot, so why go through it again?
I'll sum up the problems with your example:
1) You ignore the additional costs in producing longer lasting products, which defeat their own usefulness as the technology becomes obsolete, and replaceable parts become too expensive to continue producing.
2) You mistaken this unseen cost for some corporate conspiracy, which to you explains why all corporations have colluded in creating only supposedly short-lasting products.
3) You also ignore that people value cheaper commodities which last an expected amount of time (however short that may), more so than they value more expensive, yet supposedly longer-lasting products. It doesn't matter that nearly everyone puts their money into products which you don't like, because you will continue to conveniently blame the corporations for this (all corporations too).
PLAYER57832 wrote:Capitalism works well when things are new, when there is easy innovation. It doesn't work once the status quo is achieved.
I'd like to ask what are you babbling about, but I fear that it would be pointless.
PLAYER57832 wrote:BigBallinStalin wrote:
The problem stems from too much state intervention, which is something you admire, or which you ideally present as the solution if only the politicians would stop behaving like politicians of course.
show your work.
seriously, there are places where the state has interfered inappropriately. That is, of course because they respond to big pockets and lobbying. However, saying there are places where government has done too much is not the same as saying governments should not control corporations at all. Government is the only entity that can make companies responsible for externalities. That they need to do. Government also needs to fund the baseline research upon which innovators can build, make products to sell, etc. I remember seeing an old display at the CA state fair showing all the benefits from the moon landings, then still relatively recent. I think I said this before, but as a kid all I can remember is Tang.. very dubious, but fun growing up. I have heard that Bill Gates could not do what he did without moon landing research. I don't know if that is true, but I do know that the government has brought us many major medical advances. (companies get to take the patents, though, so its hard to track this).
If there were one thing that would benefit us, its probably to do away with lobbiest. But.. even that would have downsides.
Show my work? I just reflected the standpoints that you imply with your replies over the past 2 years on the fora.
I said "too much" state intervention. In general, that is true. If the government intervenes more in the market, you get countries like the Soviet Union and pre-market economy China, with their vast amounts of poor people and yada yada.