The so-called 'Free' market

Zebra3

I'm a little confused with our government at the moment. No, it's not about 50k in '93 being small beer, I know they (and most politicans) are out of touch with ordinary people.

It's just over the last decade house prices have gone mental. Ordinary hard-working people were being ripped off left, right and centre and the governemnt has done next to nothing to intervene. All we got was 'the free market will decide the house prices' blah, blah, blah.

And then we had Eircom thrown out on to the free market. And now Aer Lingus. And no sooner is Aer Lingus out on the free market (on the cheap and with a 10k min invest to keep ordinary folk out from cashing in on this bargain) and Ryanair want to buy it. And what do the government do? Sit back and allow the free market goddess to do her business? Not at all. Suddenly the free marklet isn't that great as vested interests are threathened.

Double standards or what?

Sand

Theres very little free market idealogy in government policy tbh. Everything is quite "middle ground", dont startle the horses type stuff, keep the unions happy etc etc. High house prices led to high stamp tax takes, Eircom allowed politicians to reap in some nice easy cash - it wasnt organised to do anything else, and Aer Lingus was again to raise cash. If the govt is against Ryanair taking over Aer Lingus its because of the unions and political reasons - not because of some idealogical sea change.

It should be obvious that FF dont have a single principle other than keeping power and ministerial cars...

Well, possible government intervention in a Ryanair takeover of Aer Lingus could be seen as an attempt to ensure the aviation market in Ireland remains competitive and 'free'. Government intervention need not neccesarily be seen as anti free market, it be required to ensure the continuance of it . Of course, pressure from interest groups and remaining in power are more likely reasons for intervention in this case.

Shutuplaura

My particular bugbear is the cafe-bar thing. One of the few occasions I was rooting for Mickie Mac. Free market my arse! the Publican party!

SeanW

Shutuplaura wrote:

My particular bugbear is the cafe-bar thing. One of the few occasions I was rooting for Mickie Mac. Free market my arse! the Publican party!

Hammer, Nail and Head.

Tricity Bendix

Zebra3 wrote:

And no sooner is Aer Lingus out on the free market (on the cheap and with a 10k min invest to keep ordinary folk out from cashing in on this bargain) and Ryanair want to buy it. And what do the government do? Sit back and allow the free market goddess to do her business? Not at all. Suddenly the free marklet isn't that great as vested interests are threathened.

It would be quite wrong for politicans to interferre directly. However, the Competition Authority should investigate any proposed tackeover to ensure that Ryanair isn't harming customers.

It is important to state that competition is not dependant upon how many firms exist in an industry. A monopoly can act in a perfectly competitive way with no inefficiencies or welfare losses so long as access is free and start up costs are minimised.

Mad Finn

Even in the United States their laws are crafted so as to make it virtually impossible to become a monopoly. It is not illegal per se to 'be' a monopoly in the US, but it is virtually impossible to 'become' one. So most actions that are likely to lead a company to becoming a monopoly, eg company number one in market taking over company number two, are forbidden.

sovtek

Mad Finn wrote:

Even in the United States their laws are crafted so as to make it virtually impossible to become a monopoly. It is not illegal per se to 'be' a monopoly in the US, but it is virtually impossible to 'become' one. So most actions that are likely to lead a company to becoming a monopoly, eg company number one in market taking over company number two, are forbidden.

AOL/Time Warner, Clear Channel, Wal Mart, Viacom...etc etc