Journal 10

Will a Capitalistic Free-Market Economy always optimally allocate resources? Has it ever? I don't think that at any point in our economy's history it has optimally allocated it's resources, but it's not like anyone is perfect. I recently watched a special on the "Daily Show With John Stewart" and they had Lewis Black on speaking about the Free Market Economy. In a very sarcastic but informative segment he spoke about all of the recalls that there have been within the last several months including Spaghetti O's, Toyota, Kellogs, Tylenal and even Macdonalds kids meal toys. Not only was it a big deal that these things were being recalled for very dangerous reasons, but it was the fact that the companies had knowledge of these dangers for some time before the recalls. In Toyota's case it was almost two years before the recalls. In tylenol's case it was over a year before the recalls. Even the Red Cross has been fined over 21 million dollars over disputes on products they have been distributing within the last year. Basically the point was that these groups were trying to make money. Not saying that all companies are going to try to lie their way to the top, but when people know that others are cheating and doing anything to get there, what is the sense in stopping them? Just like steroids in baseball a large amount of players of this era were using steroids. Other players realized they needed a leg up too and if the other guys weren't getting caught then why not use them? Then it all came to a head and blew up in everyone's face. Lets just hope our "I'll get mine" economy won't get exposed for what it really is. I wish people could just run their businesses with a general set of morals. Also, I am not saying Lewis Black is right, I just thought it was pretty interesting.