"Markets enable people to pursue their private interests through free exchange
with others, but markets are not designed to take care of common interests such
as the preservation of peace, the protection of the environment or the
maintenance of the market mechanism itself. Such common interests require
political institutions...."
The Bubble of American
Supremacy: Correcting the Misuse of American Power: Page 196 George Soros.
The free marketeers have a deep all-abiding faith in laissez-faire for
it is a faith that serves them well. It means no government oversight,
no being held accountable for the environmental disasters they
perpetrate. Like greedy spoiled brats, they repeatedly get bailed out
by the government (some free market!) so that they can continue to take
irresponsible risks, plunder the land, poison the seas, sicken whole
communities, lay waste to entire regions, and pocket obscene profits. Michael Parenti
Although Republicans (and some academic
economists) would have you believe otherwise, Capitalism has its
problems.
The market, since it is not particularly rational, is not an appropriate tool for making decisions.
It is unstable, unfair, and unsustainable.
The overarching goal of any economy should be to serve
the people. Not, as we now have, a powerful elite. For anyone paying attention,
there is evidence of widespread corruption.
It is unstable.
There are booms and busts that are disruptive and largely caused by wild
speculation, high leverage, lapses in regulation, and irrational exuberance.
What we learned in the 1930's was repealed by short-sighted politicians. The
graduated income tax is a necessary stabilizer. No
one should doubt the need for sensible regulation now.
Wealth tends to accumulate
into small groups who then use it to acquire still more.
Wide wealth disparities are always
accompanied by pathological social problems. When much of the workforce is
unused and resources are idle, at a time when we need to renew our
infrastructure, then it is the system that needs restructuring.
Although there may now be sufficient food and resources to provide the world
population a decent standard of living, capitalism does not distribute it
fairly. Poverty is persistent even when there are surpluses.
As the environment deteriorates, as it seems certain to do given
population, climate change, pollution, species extinction, urban sprawl, burning
forests, melting glaciers, disappearing icecaps, etc. there will likely be
resource wars, water shortages, and increasing food shortages.
Corporations have a clear record of being bad citizens, yet our government is
beholden to them. This has not only produced a military industrial complex
intent on building an empire, it has been a strong force for
fascism. (Fascism
is defined as the control of government by corporations. We have that. )
Corporations can produce most of what we need, but they only employ a small
fraction of the people. There is always an unlimited amount of work that needs
to be done, but corporations can do a lot with just a few people. There is
inexorable consolidation within every industry, so that market choices become
limited, work force is reduced, Fewer workers accompanied by declining wages
result in a weak domestic market.
There is even an increase in unpaid work. Media used to pay for talent, but more
often 'reality' shows rely on volunteers. Interns are expected to work for a
while before getting an actual paid job.
Because the corporate mandate is only to produce profits, is a persistent downward pressure on wages.
The lowest wages are prevailing in developing countries, so corporations, who
have no particular loyalty or patriotism, migrate to the lowest wage,
unregulated, environmental unprotected, countries. Where jobs can not be easily
exported, there is an aggressive policy of union busting. Corporate media (almost
ALL US media) sees all of this in a positive light. Our government is usually
well paid to ignore the problems of the vast majority of people. Banks get
bailed out and corporate America is well rewarded.
The best economy is a mixed one, where markets are transparent and well
regulated. We could learn a lot from techniques developed in Scandinavian countries.