stab Wrote:
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> WashingToneLocian Wrote:
> --------------------------------------------------
> -----
> > Bruce Springsteen says he shouldn't have cut an
> > exclusive deal with Wal-Mart to sell his album.
>
> >
> >
>
http://news.yahoo.com/s/ap/20090130/ap_on_en_mu/pe
>
> > ople_springsteen_3
> >
> > I guess sometime during the past 15 years he
> > missed that U.S. jobs are going overseas
> because
> > retailers like Wal-Mart basically buy only from
> > China now.
> >
> > The good news for The Boss is that Wal-Mart's
> > policies help give him ample material to sing
> > about...you know, unemployed blue collar types
> and
> > towns in the rust belt being boarded up.
> >
> > Something tells me "The Boss" hasn't spent much
> > time around "real America" in the past 20+
> years
> > since "Born in the USA" came out.
>
> I must admit I'm a bit torn by it all. On the one
> hand, America preaches it's love for capitalism
> and on the other hand it criticizes companies like
> Walmart for successfully executing on capitalism.
> Or are we saying, capitalism is great until it
> reaches a certain point.
As much as people like to talk about "free markets," markets can't be truly free without some form of government regulation. I know that sounds counter-intuitive, but if there are no rules, you have monopolies and collusion which destroy the benefits of a free market, specifically competition. Once you lose competition, you lose innovation and quality and price competition.
At the same time, there is nothing "free market" about the way China conducts its business. Specifically its currency isn't free floating, so China can out price anyone in the world with market manipulation regardless of WTO and MFN. The businesses there operate under the auspices of the government and they have virtually no labor or environmental standards, which puts any business in the developed world at a competitive disadvantage.