Walking Into a Trap

From the desk of The Brussels Journal on Thu, 2006-09-28 22:03

A quote from Gary North at mises.org, 31 August 2006

The idea that businessmen are strong defenders of the free enterprise system is one which is believed only by those who have never studied the history of private enterprise in the Western, industrial nations. What businessmen are paid to worry about is profit. The problem for the survival of a market economy arises when the voters permit or encourage the expansion of government power to such an extent that private businesses can gain short-term profits through the intervention into the competitive market by state officials. Offer the typical businessman the opportunity to escape the constant pressures of market competition, and few of them are able to withstand the temptation.

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Nothing New Here

Submitted by ras on Fri, 2006-09-29 19:28.

“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” -- Adam Smith

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True statement

Submitted by Benedikt on Fri, 2006-09-29 11:18.

Unfortunately this is a true statement. The history of privatization of State companies in Germany is a good proof. Once privatized the companies like Bahn (train), Post and Telekom tried everything to defend their monopoles by influencing the government.

Btw: Do you think that network infrastructures should be privatized or state-funded. I have a problem with company-owned telephone lines, train lines and highways because it gives those who own the infrastructure too much power in the market. (In Germany the Telekom hinders the free market by delays when you change the company. And the line is always owned by the Telekom and not by their competitors.)

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