Tuesday, 19 June 2012

Free Market Dogma

Free Markets are unicorns. They, like the invisible hand, can't be seen because they never have and never will exist. Adam Smith himself did not even believe in the invisible hand (It's only mentioned once in his seminal book The Wealth of Nations and not in the fashion that Randites and other Conservatives believe it is). Since there is no invisible hand and people are not rational beings seeking to maximize their own profit the entire notion that a free market is capable of curing all of societies ailments is pure fantasy.

Worshipping a fantasy is like praying to a god to solve all of your current problems. Sure, maybe it will work sometimes... but in the end taking some charge yourself and recognizing that free markets do indeed fail and that this deems that regulation is necessary. Of course, this does not mean corporate welfare should continue to exist. Since regulations exist and will always be necessary to prevent market failure we must make these regulations such that they benefit the many, not just the few.

This means doing away with corporate welfare, doing away with conservative deregulation dogma and restoring power to the worker's unions which once formed the backbone of a health society. This means letting banks fail when banks take on risks too big, this means socializing the losses and the profits and largely taking a stand against the free market dogma of the 1970s. This also means taking a stand against the notion of private versus public and embracing that, in the end, these two entities are largely one and the same.

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