Wednesday, July 08, 2009

I May Not Know Much About Economics, But I Still Know More than Tony Blankley

Let's say you play the same numbers every week in the Lotto. So I buy a ticket with your numbers for one dollar, then offer it to you for two dollars. After all, by next week it could be worth millions.

So you buy it. I made one dollar in profit, and you bought a chance at a fortune for only two dollars

Tony Blankley, like most Republicans, thinks that's "the free market at work." He thinks we just "created wealth."

Yes. But only for me. In a few days, you will almost certainly be stuck with a worthless slip of paper. Sure I doubled my money, but how many times will I be able to run this scam on you before you're fed up? And if I'm running this game to the tune of a hundred or a thousand tickets a week, won't I eventually run out of suckers?

Regulation of the financial industry doesn't hobble businesses, it protects them. From themselves.


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