We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
All the candidates for governor said they were for education and jobs. The way they said "education and jobs" sounded like they were describing a Loch Ness monster or a Sasquatch or some other creature they'd heard of, but didn't have a current home address for. Since all the candidates vehemently pronounced their love for education and jobs, no matter what question was posed to them, I figured there must be a dastardly candidate that was for unemployment and ignorance, but I couldn't find one. My wife helpfully offered to write my name in.
Prices are really useful. But in whole large sectors of the Chinese economy, particularly the banking sector, the government sets those prices. This means huge information loss, and the concomitant possibility that there is a vast misallocation of resources.
Don't those things happen in markets? Hell yes: witness the housing bubble. On the other hand, witness East Germany. To get a really catastrophic misallocation of resources, it seems to take a government; corporations can only screw things up on an artisinal scale. For that matter, it's worth noting that our government has spent the last seven decades trying to keep the price of housing low, and that much of that intervention, such as the creation of mortgage securitization, ultimately significantly contributed to the crisis.
witness the housing bubble.... it's worth noting that our government has spent the last seven decades trying to keep the price of housing low
Some levels of government are trying to enforce scarcity through zoning, others are trying to lower the price by making the loan-money easy. Confused government!
Government is trying to make higher education low-cost. It seems to be having the same anti-success.
Elsewhere Megan relates that the US rise in the cost of medical care can be accounted for by the portion of the cost that is masked to the end-user by being employer contribution. I wonder if there is some economic law that would show that "free" money for a good only raises the price of the good, rather than increasing supply.
"Price" is how Fannie & Freddie turned that penknife in our back into a two-handed sword --the more they lowered it, the higher it went --thus opening an irresistable yield gap between those MBS and everything else in the investment world. Such an obvioiusly deliberate bubble i cannot believe we're not seeing the entire top echelon of "Too Big To Fails" plus The government in DC ALL frog-marching off to the Graybar Hotel.