An Online Debate with an Ignoramus Filipino Statist: Monopoly and Big Corporations
I had an online debate with an RH bill supporter named Tet Gallardo who made an outlandish, stupid claim that “capitalism is a myth” and an “oxymoron.” She is a socialist, yet she believes that Karl Marx was wrong on “most levels.” She made a correct observation that “not all socialists are Marxists”, and like Marx, she’s not merely wrong on “most levels” but on everything.
One of Tet Gallardo‘s stupidest claims is that the Philippines has “one of the highest” telecom prices in the world. This is exactly what she said: “My dear, you don’t know that our telecoms prices are one of the highest in the world. And yes, I believe in private property, but I believe in democracy within each business.”
When pressed to cite her source, she merely said that she got her information from someone in the business sector she knows, which means that she’s a credulous listener. What she’s not aware of is that the cheapest telecom service is offered right here in the Philippines. Because of competition posed by Sun Cellular, we now have free calls, unlimited texting and other r promotions that benefit telecom subscribers. I told her: “If you believed in property rights, let me tell you that it’s one of the main attributes of capitalism.”
To deal with her leftist drivel on free market capitalism and financial crisis, I said:
Tet Gallardo said: ”What caused the financial crisis is what Marx has been predicting — that capitalism will fall by the very conflicts within it. It is now happening.”
You clearly don’t know what you’re talking about, ma’am… Really all leftists are idiot. Let me tell you that capitalism and free market system are synonymous. They are the same bananas. A while ago you said that free market system is a myth. But now you’re telling that according to your mentor Karl Marx, he predicted that “capitalism will fall by the very conflicts within it.” What a fatal contradiction, which clearly shows you don’t know what you’re prattling about.
Let me tell you that no state or nation today is considered a “free market system.” The Philippines is a MIXED ECONOMY bordering on dictatorship. America is a mixed economy. A mixed economy is a mixture of freedom and state controls.
Let me also inform you that the global financial crisis was caused by America’s government intervention into the economy.
Read this to educate yourself:
Is it proper to blame capitalism for these horrible results of government intervention and corruption? Capitalism is based on that French slogan “laissez-nous faire,” which means “let us alone.” It is wrong and improper to ascribe the ongoing economic crisis to Capitalism. For decades, Capitalism has been vilified, attacked and distorted by the New Left or the Liberals and the Conservatives. Over the past few months, the Obama administration massively expanded the scope and power of the executive branch by creating dozens of government Czars, which include health czar, regulatory czar, among others. They authorized the semi-private Federal Reserve to print more than 2 trillion US dollars (although there were reports that it reached $5 trillion) out of nothing! This really massive bailout money was used to rescue financially troubled banks and companies which were mismanaged. In the first place, the Obama administration should not have rescued these financially ill companies and banks and should have let the chips fall where they may. But it seems that the top executives of the bailout beneficiaries are again committing the same mistake which brought their businesses to financial turmoil, as they have been distributing hundreds of billion dollars among each other. It is clear that the altruistic bailout scheme of Obama failed to bring the desired results, as recession continues to worsen. Also today, every penny that the Fed prints is a mortgage on wealth that does not even exist. It’s a debt to be paid by the people through their ability and willingness to work. It means that the bailout money did not come from the taxpayers or government loans. This stultifying figure came from the magical power of the Fed to print money out of thin air. Under this system, inflation in inevitable.vAs a result, the price of gold went beyond US1,000 per ounce. This only proves this “barbarous relic,” as the mind behind this monetarist system- John Maynard Keynes- described gold, is a thing of real value.
Every socialist state or nation in the past collapse. Socialism or Marxism will never work. It won’t work and will never work.
Tet Gallardo posted another highly stupid comment, saying: “Capitalism is only democratic in principle but competition is always rigged by the few who managed to control government. That is a fact. The cartel members tell the government how to regulate each industry so that new competition will be difficult unless they were part of the powerful few. For instance the GLOBE-SUN-SMART cartel can lobby the government how to regulate telecoms industry so that entering as a new competitor will be difficult unless you were as powerful as SAN MIGUEL who wants to go into that sector one of these days. Again, there is no such thing as FREE MARKET CAPITALISM.”
I dealt with her idiotic comment point by point:
Again, here’s why you don’t know what you’re talking about.
You said: ” Capitalism is only democratic in principle but competition is always rigged by the few who managed to control government.”
This is full of contradictions and undigested assumptions. Capitalism and democracy are OPPOSITES. Competition is not “always rigged by the few who managed to control the government.” It’s the other way around!
For your information, those who curry favor with the government hate competition. They don’t want competition. Competition is the antidote to monopoly and cartels you denounce! Monopolists hate competition!
You said: “The cartel members tell the government how to regulate each industry so that new competition will be difficult unless they were part of the powerful few.”
Do you really understand what you’re prattling about? Regulation is opposed to competition! Hahaha! It is competition that the so-called cartels and monopolists try to get rid of!
This is the stupidest thing I’ve ever read online.
You said: “For instance the GLOBE-SUN-SMART cartel can lobby the government how to regulate telecoms industry so that entering as a new competitor will be difficult unless you were as powerful as SAN MIGUEL who wants to go into that sector one of these days. Again, there is no such thing as FREE MARKET CAPITALISM.”
Yes, that’s possible. They can lobby the government to regulate their business affairs if they’re that INSANE!
Don’t you know that these companies are fed up with too much regulations? Don’t you know that foreign and even local investors are afraid to invest in RP because of too much government controls?
If there’s really cartel in the telecom sector, why is it that the prices of their products and services go down? Kindly explain?
To explain to you that the cartels and monopolists hate competition… In fact, they embody John D. Rockefeller’s famous quotation: “Competition is a sin.” So this shows you knew nothing of what you said…
Tet Gallardo also made it appear that it’s as if I was in favor of oligarchy, as she somehow believed that oligarchy and socialism are opposites, which explains her inability to digest and integrate concepts.
Here’s what I said:
What makes you think I’m in favor of oligarchy? Like socialism, fascism and monarchy, oligarchy is all about state control. The ability to identify, integrate and understand concepts is very important here, ma’am. The following “isms”- socialism, fascism, nazism, communism- are all forms of collectivism. Oligarchy is a form of collectivism, wherein controls and powers are concentrated on a privileged few. Oligarchy, like any other collectivist isms, is opposed to free market capitalism.
The early American setup was nearly a free market system. During the early years of America there were only a very few government controls. It is America that officially instituted property rights and intellectual property rights into its government setup. It is America that first recognized the concept of individual rights and nearly practiced free market capitalism. It was never the intention of America’s founding fathers to establish democracy. What they established was limited government Republican system or representative government. Again, kindly watch the video you posted. It’s explained there.
To claim that free market system is a myth is to also claim that property rights and individual rights don’t exist. Capitalism is an individualist social system founded on the philosophy of Aristotle that “man is an end in himself, not the means to the ends of others.” This is the reason why it’s important to identify and integrate concepts to understand the full meaning of these “isms.”
To answer her idiotic claim that telecoms’ airtime is expensive, thus the three giant telecoms- Globe, Smart and Sun Cellular- need to be regulated, I said:
If your claim that the three telecom giants established a cartel in the Philippines were true, then the logical consequence is that we should be paying more. But it’s just the opposite. You are talking as if the country’s businessmen are so stupid. Yes, it’s true that there were some people who tried to lobby the government to protect their business interests but they failed.
Like I said before- Here’s a golden rule for successful businesspeople: Don’t ever think you can control a political power-luster with your wealth.
If air time is so expensive, it’s because of government regulation. It’s because of the fact that the government makes it very difficult for potential investors to start new telecoms and television networks. The existence of competition in the marketplace compels the market players to lower the prices of their products and services. Again, it is the government that causes cartels and monopolies. It is the government that causes economic crisis.
If prices go up, it’s because of the lack of competition in the market place and the stupid people who oppose competition. The answer to expensive products and services is free market system. However, I don’t share the evil belief of the socialists that a political ideology can only be fought and won through class warfare or bloody revolution; I believe it can only be fought through intellectual struggle.