Bfgrn
Gold Member
- Apr 4, 2009
- 16,829
- 2,492
- 245
The first democrats, the classical Athenians, had a word for the ideal free marketer, the homo economicus, working for his own economic gain but unconcerned with the community. It was not particularly complimentary, the ancestor of our word “idiot.” Pericles expressed the sentiment underlying this: “We regard the citizen who takes no part in these [public] duties not as unambitious but as useless…”
The closest twin we have in America today to the communists and Marxists in Russia are the 'Marketists'; conservatives, libertarians and 'free marketeers' who have turned government nonintervention and 'laissez faire' into a religion. It has created 'malaise faire'
Blind Faith
For a country that has prided itself on its resourcefulness, the inability to address our problems suggests something deeper at work. There is something, powerful but insidious, that blinds us to the causes of these problems and undermines our ability to respond. That something is a set of beliefs, comparable to religious beliefs in earlier ages, about the nature of economies and societies. These beliefs imply the impropriety of government intervention either in social contexts (libertarianism) or in economic affairs (laissez faire).
The faithful unquestioningly embrace the credo that the doctrine of nonintervention has generated our most venerated institutions: our democracy, the best possible political system; and our free market economy, the best possible economic system. But despite our devotion to the dogmas that libertarianism and free market economics are the foundation of all that we cherish most deeply, they have failed us and are responsible for our present malaise.
The pieties of libertarianism and free markets sound pretty, but they cannot withstand even a cursory inspection. Libertarianism does not support democracy; taken to an extreme, it entails the law of the jungle. If government never interferes, we could all get away with murder. Alternatively, if the libertarian position is not to be taken to an extreme, where should it stop? What is the difference between no government and minimal government? Attempts to justify libertarianism, even a less than extreme position, have failed. Laissez faire, or free market economics, characterized by minimal or no government intervention, has a history that is long but undistinguished. Just as the negative effects of a high fever do not certify the health benefits of the opposite extreme, hypothermia, the dismal failure of communism, seeking complete government control of the economy, does not certify the economic benefits of the opposite extreme, total economic non-intervention.
It may seem odd, given the parabolic arc of our financial markets and the swelling chorus of paeans to free market economics, but despite the important role of the market, purer free market economies have consistently underperformed well-focused mixed economies. In the latter part of the nineteenth century the mixed economies of Meiji Japan and Bismarck’s Germany clearly outperformed the free market economies of Britain and France. Our own economy grew faster when we abandoned the laissez faire of the 1920s and early 1930s for the proto-socialist policies of Franklin D. Roosevelt. It has become increasingly sluggish as we have moved back to a purer free market. Data of the past few decades show that our GNP and productivity growth have lagged those of our trading partners, who have mixed economies characterized by moderate government intervention.
The persistently mediocre track record of laissez faire casts doubt on the claim that an economy free from government interference invariably maximizes the wealth of society. In fact, there are sound reasons the pure free market must underperform well-focused mixed economies.
But despite laissez faire’s mediocre track record and despite powerful arguments that it cannot possibly provide what it promises, the notion of the unqualified benefit of the free market has become deeply embedded in our mythology. Apologists have exulted in claims that glorify free market mythology at the expense of reality, and also at the expense of society. Free market principles, even though they have failed in economics, have been eagerly applied to sectors ranging from politics to education, where they have contributed to societal dysfunction.
One politically popular myth, that free market economics and government non-intervention provide the basis for true democracy, flies in the face of history.
Kenneth Friedman - Myths Of The Free Market
The great enemy of truth is very often not the lie – deliberate, contrived and dishonest – but the myth – persistent, persuasive, and unrealistic. Too often we enjoy the comfort of opinion without the discomfort of thought.
President John F. Kennedy
The closest twin we have in America today to the communists and Marxists in Russia are the 'Marketists'; conservatives, libertarians and 'free marketeers' who have turned government nonintervention and 'laissez faire' into a religion. It has created 'malaise faire'
Blind Faith
For a country that has prided itself on its resourcefulness, the inability to address our problems suggests something deeper at work. There is something, powerful but insidious, that blinds us to the causes of these problems and undermines our ability to respond. That something is a set of beliefs, comparable to religious beliefs in earlier ages, about the nature of economies and societies. These beliefs imply the impropriety of government intervention either in social contexts (libertarianism) or in economic affairs (laissez faire).
The faithful unquestioningly embrace the credo that the doctrine of nonintervention has generated our most venerated institutions: our democracy, the best possible political system; and our free market economy, the best possible economic system. But despite our devotion to the dogmas that libertarianism and free market economics are the foundation of all that we cherish most deeply, they have failed us and are responsible for our present malaise.
The pieties of libertarianism and free markets sound pretty, but they cannot withstand even a cursory inspection. Libertarianism does not support democracy; taken to an extreme, it entails the law of the jungle. If government never interferes, we could all get away with murder. Alternatively, if the libertarian position is not to be taken to an extreme, where should it stop? What is the difference between no government and minimal government? Attempts to justify libertarianism, even a less than extreme position, have failed. Laissez faire, or free market economics, characterized by minimal or no government intervention, has a history that is long but undistinguished. Just as the negative effects of a high fever do not certify the health benefits of the opposite extreme, hypothermia, the dismal failure of communism, seeking complete government control of the economy, does not certify the economic benefits of the opposite extreme, total economic non-intervention.
It may seem odd, given the parabolic arc of our financial markets and the swelling chorus of paeans to free market economics, but despite the important role of the market, purer free market economies have consistently underperformed well-focused mixed economies. In the latter part of the nineteenth century the mixed economies of Meiji Japan and Bismarck’s Germany clearly outperformed the free market economies of Britain and France. Our own economy grew faster when we abandoned the laissez faire of the 1920s and early 1930s for the proto-socialist policies of Franklin D. Roosevelt. It has become increasingly sluggish as we have moved back to a purer free market. Data of the past few decades show that our GNP and productivity growth have lagged those of our trading partners, who have mixed economies characterized by moderate government intervention.
The persistently mediocre track record of laissez faire casts doubt on the claim that an economy free from government interference invariably maximizes the wealth of society. In fact, there are sound reasons the pure free market must underperform well-focused mixed economies.
But despite laissez faire’s mediocre track record and despite powerful arguments that it cannot possibly provide what it promises, the notion of the unqualified benefit of the free market has become deeply embedded in our mythology. Apologists have exulted in claims that glorify free market mythology at the expense of reality, and also at the expense of society. Free market principles, even though they have failed in economics, have been eagerly applied to sectors ranging from politics to education, where they have contributed to societal dysfunction.
One politically popular myth, that free market economics and government non-intervention provide the basis for true democracy, flies in the face of history.
Kenneth Friedman - Myths Of The Free Market
The great enemy of truth is very often not the lie – deliberate, contrived and dishonest – but the myth – persistent, persuasive, and unrealistic. Too often we enjoy the comfort of opinion without the discomfort of thought.
President John F. Kennedy
Last edited:
thetor
