Free products and services equal unlimited demand
October 17, 2008
I’ve been meaning to write a post concerning “free” goods and services. What happens when the government – or any other group – comes in and offers something for a very low cost or free?
I’ve found three events that will show us what happens when you offer stuff for free or at super-low cost, well below the actual market value.
If you think $700 billion is nuts, wait for the Social Security rescue plan
October 15, 2008
I’ve been thinking about the bailout again. I’ve been busy, it makes me mad, so I write a little about it and leave it at that. Now I’m thinking about the next government emergency bailout – Social Security.
It will come up on us quickly. It will be a crisis. We may only have days to respond. Congress will be forced into immediate action. If you think $700 billion was a crap sandwich, what do you call a $6.5 trillion dollar emergency bailout? A crap Las Vegas-style buffet?
Connecticut governor asks banks to help small businesses
October 9, 2008
Is this not how all of this economic strife started? Connecticut’s Republican governor, M. Jodi Rell, wants local community banks to contribute $1 million each into a lending pool that will provide loans to small business.
Car buyers upside down after driving off the lot
October 8, 2008
I understand that most car buyers are not purchasing vehicles for an investment, but you have to admit that just because you’re upside down in a borrowing situation does not mean that you are unable – or unwilling – to make the payments.
When you took the zero down payment plan and drive your new car off the lot guess what? You’re upside down. You may owe more money to the bank than what the car is worth. It does not really feel good, but you make the payments. The same thing is happening to some home owners. We need to look at the culture of lending and borrowing.
Walter Williams writes – Lessons from the bailout
October 8, 2008
Williams has another good column out this week, and it quickly sums up – for those of you who missed it – how this economic crisis started back in 1977 with the Community Reinvestment Act. Walter’s point gets right to the root of the problem.
Even though McCain and Obama want to lay the blame squarely at the feet of greedy people on Wall Street, this was not the fault of the free market. It was government providing – instead of promoting – the general welfare.
