Cool money and fulfillment of dreams

[And I Love Her]

It's largely macroeconomic forces driving up the cost of living.  We let giant insurance companies dictate health care policy and allow real estate speculators to inflate the cost of housing.  We have thousands and thousands of unoccupied housing units owned by hedge funds hoping the prices continuing to rise and they can make a quick buck, thus boxing out actual people from being able to afford housing.

Ugh! I've evidently become a cantankerous old man who's drawn to these debates. 

I'd argue that this is the result of giving governments too much power. Healthcare is expensive in the US because state and federal policies have basically prevented competition(everything from limiting the number of medical residents to banning pharmaceuitcal purchases from Canada). Housing is certainly threathened in some areas by hedgefunds buying up properties. However, it's a much bigger problem that Banks and Investment Firms were allowed to crash the housing market(in part, due to poorly-planned government programs) and then bailed out. In both cases, we see crony capitalism. These companies do not actually have to compete. Instead, thanks to government regulation that weeds out their competitors, the rich get richer and the competition goes bankrupt.

In my eyes, that's a problem that seems from government. Allowing government to severely regulate/fund healthcare and education has led to a market with no competition. Giving the government a monopoly over the currency, and then removing the one standard(gold) that held it in place, has led to massive inflation that only hurts the poor and middle class. The solution is less government involvement in the market, not more. Why give the people who've ruined the economy more power to "fix it?"

As to socialism/communism, it's always a nice idea - but it contradicts human nature. In small groups, it can be excellent(and some communes are super cool). On a large scale, it requires centralizing power. As Hayek (who wrote "The Road to Serfdom") pointed out, this will inevitably lead to the government also controling speech and thought. Very simply, socialism requires planning for every demand. As human demands are unending, the government starts to determine what should be demanded - and who deserves it. The government decides jobs, the government decides pay, the government decides distribution. In real-life, that has meant oppresion, famine, political killings and much more. Additionally, as everyone has their own opinions on what is/is not valuable to society, it's impossible to allow decisions to be made democratically. That's why socialist and communist countries always devolve into dictatorships. Someone has to set the value of everything, since the free market no longer exists.

A lot of people seem to think that countries like Sweden and Finland are socialist. They are not. The government does not control the means of production, and the free market is still free. These countries simple have large social safety nets(e.g. high taxes). For the Americans on here, it's noteworthy that Finland and Sweden are mostly ethnically and culturally homogeneous. Although any country has intense political debate, it's a but easier to agree on where that 50% of taxes goes when people have similar values. As far as an example for the US goes, Switzerland is far better. Taxes are generally lower than the US, but public services are better. Referendums allow citizens to directly change the law. Guns are widely available but sensibly monitored. All of this in a confederation with four official languages.

The problem in many Western countries is not capitalism. It's government corruption that destroys capitalism.

[frillyribbons]

Congratulations. Truly. That is money I would probably kill for. It's not quite like winning Mega Millions, and you won't be able to live like a prince, but it's still a life-altering sum.

If I was randomly given $300,000, first thing I would do would be to pay off my house and then stop fucking working. You've probably heard this many times, but our time on this earth is a precious commodity, and spending it wasting away in an office or wherever else is a supreme waste. I do it because I have to, but I feel like it's already deprived me of so much existence and opportunity to live life. "Memento mori" whispers in my mind louder every day.

Instead I could become the unassuming, genteel older guy who likes to do crafts and volunteer helping the kids at the local church, library, and YMCA.

Do you like to travel? You could travel clear across the earth if you wanted to. Develop friendships, but don't tell them the kind of money you've got.

As you've already mentioned, material pleasures don't get you very far with life satisfaction and happiness. Don't fall into the trap of "keeping up with the Joneses." Live simply.

I'd argue that this is the result of giving governments too much power.

I agree that too much government and crony capitalism can stifle competition and  benefit the big players. But by and large it's really not over-regulation, but rather the lack of regulation which has caused the current mess we're in. Sure, I don't trust the government to "fix" anything, but I trust companies even less.

Your example, the housing crash, was precisely due to a lack of regulation in loaning for subprime borrowers.

I don't think any of us would like to go back to the 19th century, where a lack of regulation or concern for labor laws, safety, sanitation, and so on led to complete misery for large portions of the population. It was a time of historically unmatched prosperity, but did the means justify the ends? In any case, companies are objectively not responsible enough entities to regulate themselves.  There has to be something from above keeping them in line.

In terms of the gold standard, my understanding is that it artificially inhibited wealth generation and growth because it was tied to a finite asset. No matter how much prosperity there is and how much the little red line goes up, there is only so much gold in the world. This leads to deflationary monetary policy, which stunts the economy.