A simple market solution to internet privacy

The issue of internet privacy is easy to solve and in a way which should appeal to those who claim to believe in a free market economy.

Governments should pass legislation that all computer data should be publicly available without charge. This means we should be able to see what information about us is available and any business should also have access the same information. We should also be able to see who has accessed the information.

securitycamera-1-800pxWe would be responsible for deciding what personal information to make public realizing that it would be out there forever. We would also see who was using that information and would be responsible for protecting ourselves from exploitation.

Those of us who live in small communities are already used to others, including some business people, knowing quite a bit about us. It is now a question of scale. Once upon a time I worked on a small town newspaper in Ontario. As the junior reporter one of my duties was to write obituaries. Each day at lunch the elderly couple with whom I boarded wanted to know who had died. They also wanted to know which funeral home as Conservatives and Liberals were buried by separate undertakers

We often want and expect governments to protect us from people who would exploit us. But in the long run we all have to take responsibility for our behavior and our own protection. We are the ones who take the consequences.

Internet privacy is an issue because some people can make lots of money if they have exclusive access to the data. Making data free would change the dynamics of social media and some of it might become subscription based.

One of the biggest current economic fallacies is that we have a market economy. What we really have is an economy in which governments legislate to restrict competition so that some people can make profits. One of the fundamentals of a market economy is that knowledge, technical and market conditions, is known to all participants. Another fundamental principle is that customers pay the full cost of the goods or services they consume. Subsidies whether from the government, advertising or the sale of data make for an inefficient economy. What I am suggesting in this post is that we make the internet a part of a market economy.

In a true market economy there are no profits as competition keeps prices such that people can earn a wage and a return of investment but no profits. Therefor a market economy would take care of another current issue – equality.

I do not expect this idea to be taken seriously as those who profit from a noncompetitive economy have a lot of political power. Therefore internet privacy will provide a lot of work for lawyers and that Mark guy will become even more exploitive, richer and more powerful.

 

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Paying the piper/economist and making economic decisions

He who pays the piper calls the tune. This applies to economists as well as musicians and explains why economists have so much difficulty coming to terms with the ideological aspects of their field.

This post was prompted by an article about whether economists are biased towards the free market or towards regulation.  This blogger would prefer to evaluate economies according to who makes decisions.

I get suspicious when I hear economists talk about the “free market”  because they usually mean something different to what I understand is a free market economy.  To me a free market economy is one based on the perfect competition model.  What we actually have is an economy where governments pass legislation to restrict competition.  Copyright, patents, licensing, tariffs, health and safety regulations all work to restrict competition and allow some people to make profits they would not get in a competitive economy.

Sometimes the profit making gets out of control and the way to deal with this is to introduce  regulations  rather than to return to more competition.  Therefore I figure the debate in this article is irrelevant.

What is relevant is who makes economic decisions.  If we had perfect competition most if not all decisions would be made by consumers who would vote with their spending decisions.  Unfortunately there are too many people in this world who like to make decisions for others.

One of the big things which influences decision making is the fractional reserve way of creating money.  In this process money is created when bankers make loans and as they get to decide who gets loans they have a say over what economic activity is  going to take place.  If we had a national exchange trading system as proposed in the essay “LETS to market: Dealing with the economic crisis” on this weblog money would be created via payments to individuals who would then make decisions in their purchases or investments.

The fractional reserve system  also limits decision making in that many people, especially during their working years, carry a large debt load.  As most of us have to work to repay our debts, we are forced to support another person’s decisions.  And the work ethic adds a lot of support.

Governments also interfere with decision making by passing legislation which restricts competition and by accessing large amounts of created money.  This of course allows them to make economic decisions according to their values which don’t always agree with their citizens.

My view of how the economy works is less than consistent with conventional economic wisdom.  Readers will decide for themselves which view  they want to accept but I will point out that economists who don’t promote the conventional view probably don’t stand much chance of holding important high paying jobs.  People in power, industry or government, want to feel they are doing good and it is the role of economists to say what their employers want to hear and most economists are paid directly or indirectly by business or government.

If you liked this post your are invited to comment, press the like button and/or click  one of the share buttons. If you disagree you are invited to say why in a comment.  While I like the idea of sharing this platform, my personality is such that I don’t reply to many comments.

 

 

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