Dr. Paul.Feb13,2K8

October 12, 2008

Egalitarian economics Examined

Suppose an individual was equal to another as such, in that their worth was undiminished by social preconceptions, establishing their rights at birth. By this standard, we might achieve social standing by personal actions weighted through the public sphere. For such a reality to take effect, condemnation & appreciation of individual action [positive or negative] ought to be fixed on a varying scaled, measured by their relative cost-benefit -equally, across the board with draconian enforcement.

Sadly, extreme application of the theory above would, under current conditions, prove draining and unmanageable throughout society. Heavy handed conditioning begins early, during a child's rearing, so unless early development models aren't trained to improved towards critical-thought,  true egalitarianism escaped us by another generation, again.

However, against my better nature, economic fundamentals diminish the ideals of the eqali, with stronger theory, namely the free market. Of course, totally laissez-faire services aren't common -although many exist off the grid. On a gradual scale, a market becomes freed when entrepreneurial individuals place risk before gain, to achieve success. Conversely, closed markets become more prevalent when gain is placed before risk, so that central planning dictates what is necessary and what is valuable.

[eqali - n. those who exists as equals amongst their peers]

In free markets, an individual might risk their savings, investing in an idea or product so that they may approach the market, exchange within it, and profit while benefiting both parties. The challenges of  engaging the market are elastic, variable and fickle, to say the least. However, succeeding in this environment provides the greatest reward; financially, often the pursuit also allows for greater investment upon social development.

Ultimately, entering the market requires acknowledging four factors, defined as: price, the negotiated value of a given product by buyer & seller; product, development and production of said item which is marketed with purpose; distribution, providing the means by which to facilitate an exchange between manufacture and end-user; finally sales, the manifest process of transaction.

With these challenges, it becomes apparent to anyone attempting to enter free-market enterprise that the fewer invasive obstacles placed before the entrepreneur, the less strenuous maintaining a venture becomes. Strains upon a business venture are those which inhibit competition, growth and productivity.

These may take form in unfair legislation, such as mandating all hotels use identical sprinkler systems, regardless of size or structural capacity. Not only would this close the local market on sprinkler systems in the clutch of few businesses, but it would also overburden unprepared unnecessarily, where another safety measure might prove more cost effective.

Taxation leeches from growth when it become apparent to management that greater revenue means a greater loss to government demand. That is, if it means profiting more equals a larger percentage of revenue being, individual ambition to achieve greater is diminished. Underachieving is promoted by burdening success.

Again, intrusion upon the market, by outside sources [e.g. government, but not consumer watchdogs] often -if not as a rule- leads to concentrated management of production and distribution, so that here must function like there, regardless of capabilities and demand. When in fact, local market expectations and availability ought to decide how business gets done.

So, while there is hazardous cost to forcing the market into anything but what is possible & necessary, there are those who seek to level the playing field, per se, by facilitating regulations that claim to manage the market's factors [preventing this natural advantage of location or that benefit of cheap labour] actually dilutes the strength of commerce.

It is often thought, minimum wages, public works or subsidized prices benefit the neediest in society; however, it is my belief that  these very policies perpetuate poverty and struggle. While establishing a claim upon the market is difficult, made none easier by precocious regulations, the incentives wrought easily make up for any mental challenges required to succeed.

In my next discussion I will attempt to repudiate socialist tokens of common-sense, defend social class against egalitarians & tell you why the centralized management breeds despair.

Till then, tread conservatively & live liberally


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