>Essay question:
>
>1. What is the role played by 'planning' and 'markets' in the following
story?
Answer:
If you're in the US, it's 'markets', obviously. All the government is doing
is keeping the dead hand of (some other) government out of otherwise
undistorted free markets. If you're in Europe, it's 'planning', as the dead
hand of (some other) government is distorting free markets. These
assessments, uncontentiously correct though they are, remain provisional,
however - as four medium-term possibilities arise; themselves giving rise to
a wide spectrum of appropriate reappraisals:
(a) If, five years down the track, the companies had not merged, and both
had done well, then this would have proven markets work.
(b) If, five years down the track, the companies had merged, and had done
well, then this too would prove markets work.
(c) If, five years down the track, the companies had not merged, and one or
both had not done well, then this would prove planning doesn't work.
(d) If, five years down the track, the companies had merged, and had not
done well, then this too would prove planning doesn't work.
* Note: This is not to take a position concerning the argument and arguers
on Pen-L of late - just my position on mainstream business-sheet economists,
who have never, as far as I can remember, been wrong - their theory having
been unambiguously vindicated by each and every event of each and every of
the last million years.
How'd I do, Sandwichman?
Rob.
>
>BRUSSELS, July 24 (Reuters) - The European Union on Monday launched a
>broadside against proposed U.S. legislation which could block Deutsche
>Telekom AG from buying U.S. cellphone group VoiceStream Wireless Corp.
>
>European Commission spokesman Michael Curtis said a measure to close a
>loophole permitting acquisitions of U.S. telecoms firms by foreign
>companies that are more than 25 percent state-owned would set a
>"negative precedent" if it became law.
>
>The measure, proposed by U.S. Senator Ernest Hollings, would have WTO
>(World Trade Organisation) implications, Curtis said.
>
>"If this bill were to be adopted it would restrict foreign ownership
>in U.S. telecoms firms, which is contrary to commitments undertaken by
>the U.S. in the WTO," he told the Commission's daily news briefing.
>
>The warnings flew as Deutsche Telekom, the telecommunications giant
>which is majority owned by the German government, announced a $50.7
>billion takeover of VoiceStream.
>
>
>Temps Walker
>Sandwichman and Deconsultant
>
>
