Free to Lose

It is truly a testament to how ridiculous anti-capitalists are that they are now complaining about companies both when they lose money and when they make “too much”. So JP Morgan loses a couple billion dollars, and there are calls for the government to increase regulations because, I don’t know, losing money is bad and therefore shouldn’t be legal. Really.

Okay, a remedial course in basic economics is a general good recommendation for any politician, since most badly need it: I don’t think even a “liberal” economist would dispute that the way Capitalism is supposed to work is that people will tend to act in such a way as to make more money, because loss of money is a disincentive to behavior that causes loses. It is literally logically absurd to suggest that the behavior that leads to loss of money needs to be punished by the government: the loss of money is the punishment for such behavior and results from no government regulation.

What is especially ridiculous about this is that anti-capitalist actions after the 2008 crash prevented the disincentive of failure (the ultimate loss, reserved for the most egregious of errant business practices) from actually taking place. They not only didn’t disapprove of business making mistakes by doing so, they actively encouraged businesses to make mistakes! The only thing consistent aspect of their behavior is that they have continually stood in opposition to whatever they think would happen without them. They either desperately want to be relevant, or just revel in disrupting the natural order of a free economy. Whether they are trying to do so or not, the real point is that distortions of the natural market signals leads to malinvestment, inefficiency, and failure. At which point the anti-capitalists pretend that they haven’t disrupted the economy, and blame the failure on a unregulated, free market, and proceed to intervene even further.

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