In A Perfect World
Milton Friedman is the man we can thank (or not) for the Free Market Theory that fueled deregulation and globalization. Just as Marxism sounded good to the idealistic in the 40’s, the free market premise sounds good to the idealists of today. Marxism was supposed to produce a worker’s utopia. The free market is supposed to create a thriving capitalistic economy that serves everyone.
We know how well Marxism worked in practice. Friedman’s belief that economic self-determination raises the overall quality of life and will automatically self-correct when problems occur is another pie in the sky dream. It might work in a perfect world but the problem is, we do not live in a perfect world.
Just a cursory glance reveals two problems with Friedman’s theory: First, markets seek only to maximize profits therefore the greater good plays no part in their decisions. Second, in a world peopled with humans who have those pesky traits of greed, ambition, and selfishness, the ideal will always become distorted.
Need some factual proof? The crash of 1929 and the great depression came about in a market that was regulating itself. It was this man made catastrophe that brought about recognition of the need for the very government regulations that Friedman calls spoilers. More currently, the sub-prime mortgage crisis decimating today’s housing market is the result of deregulation of the lending industry.
While proponents tout the advantages of a free market, they seem oblivious to their own words versus actions contradictions:
- They grant tax breaks and subsidies that benefit certain corporations.
- They ratify trade agreements with other countries that benefit the wealthy but continue suppression of the poor,
- They allow control of our economy by banks through the Federal Reserve and removal of the gold standard for our currency.
- They allow inequity that crushes the honest competition on which a true free market is based, by giving corporations the rights of an individual.
Do you suppose they are not really oblivious to these contradictions, but rather are deliberately misleading the people? That would mean they know that these actions turn the free market into a managed market – managed for the benefit of the wealthy few without regard for the effect on the poor and middle class many.
Would they really do such a thing? Take a look at the world around you, then you tell me.
Comments
You raise a good point. They must know what they are doing, and what we might expect. No doubt some of these people have mediocre minds with limited imagination, but not all.
The Perfect world would be a place, in my imagination, not measured by monetary wealth, but by the depth and breadth of Spirit and awareness. I always marvel at the idea held by some that private enterprise will just take care of everyone -- only after the bottom line has been met. You never see private enterprise running to a place or situation in which help is needed. Only governments do that.
It's unfortunate we enter the 21st Century with the old consciousness; hopefully we won't exit it in the same way. I have the feeling this will be a pivotal century for Homo sapiens, one way or the other.
Posted by: Stephen | November 26, 2007 07:59 AM