You hear it espoused in virtually all political and economic speeches… “I believe in free markets….”
There is a common myth that America is the home of free markets and our way of life was built on the free market model for its very existence – as if it was written into the U.S. Constitution. Trust me, I’ve read the Constitution – obedience to free market capitalism is not there.
The health of “free market” capitalism may be the biggest fairy tale in the World today.
Can’t we all agree that capitalism is the opposite of a centrally controlled big government economic policy?
But who is the dominant global economic winner today?
ANSWER: CHINA – Which is the largest and most repressive and centrally controlled communist state in the World… hardly a free market society.
Evidence that Free Markets don’t exist in the U.S.
• Insurance on financial deposits – (free markets say) that bad banks and foolish depositors should lose money.
• The Federal Reserve – (free markets say) that interest rates should set their own levels.
• Big companies get bailed out while small companies are allowed to die.
• Only a big business has the financial power to outsource jobs to peasants overseas. (a dry cleaner can’t hire a slave for 20 cents a day – but General Electric can)
• Rescue plan of the day banks, countries, industries, people… you name it
The only criterion on whether a “free markets” exists is the willingness for free markets to find their own organic price levels without government interference. Capitalism means that ideas and capital have the “equal opportunity’ to succeed and fail.
When an unproductive business and economic venture no longer supports itself under the free market model, they are allowed to wither and die. In fact, free markets require that the new must replace the old. (watch the Steve Jobs commencement speech)
Or put more bluntly, something old MUST die to provide the fertilizer and living space for the new.
It’s been the story of all living organisms big and small for millions of years. It’s got a longer and better track record than any economist.
America is caught in the middle… it does not know how to centrally control its resources (like China can). Nor can it live under its own rules of free market capitalism.
Personally I favor the cleansing process of true free markets, but most people can’t handle the truth of; death and re-birth. If you like the flowering of Spring and Summer you have to value and honor the purpose of Fall and Winter.
Who are the constituents that fear “free markets” the most? It’s the powerful elite in our society who milk the dying cow i.e., large business, government, lobbyists (those who have a lot to lose).
We the people… should let free market capitalism reap what it has sown… which is failure. That’s what free market capitalism is all about.