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The ’Not So’ Free Market
The 'Not So' Free Market By Mark Rehl With editing and additional material by Rich T. Anderson & Jennifer Shay
"I'm a strong believer in free enterprise, so my natural instinct is to oppose government intervention… these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence." -George W. Bush The headlines say that Wall Street is collapsing. Why is this happening? The short answer is that the sub-prime mortgage meltdown is wreaking havoc with the market. The free market. What is this 'free market'? We hear and read about it all the time, but what exactly is a 'free market'? How did it come to be, and why is it in crisis now? In the last eight years, and for all the time in the last thirty-forty years that a republican has held office, one of the main thrusts has been to deregulate. In the early late 1800's and early 1900's many regulations were put in place by the government to protect the public. These regulations range from quality standards on meat to preventing the formation of monopolies to overseeing utilities, communication, and transportation for the public well fare. The Neo-Conservative movement, that started in the 1960's as a counter to the sixty's counter-culture movement, has always pushed for the repeal of many of these regulations because they hinder the profitability of corporations. It is about what they refer to as 'less government', they say that 'the government' is not competent. They tell you that you don't want 'the government' running public works like education, health care, water, energy, etc. The neo-cons believe that the private sector, i.e. business, can handle these things better than the government. This seems illogical because the goal of any business is profit. The bottom line. They do not answer to 'the people' as our government is supposed to, but rather to corporate shareholders. Government is defined as: The person or persons authorized to administer the laws.1 The Government as an institution is either trustworthy or not depending on who the people that administer it's functions are. In the United States that means our elected officials. We aspire to have representative democracy, which means that we elect people to represent us in administering the laws. The neo cons say you can't trust 'the government' while simultaneously being those that are elected to power. It's a conundrum. The movement to deregulate focuses primarily on repealing laws that have governed large businesses and corporations. It's a theory that supposedly states that government regulation isn't needed because 'the market' polices itself. Consumers will use their buying power to hold corporations in check by boycotting their products if those corporations are doing something unethical. This for one thing implies an all-knowing, extremely well informed consumer base. It also assumes that companies will be completely honest about their business practices. In actuality what deregulation has done is create anarchy in the business sector of this country. You and I still have to obey the laws, but there are now little to no laws that protect the workers or the general public from underhanded business practices. The sub-prime mortgage crisis is happening because there were no laws to stop bankers from creating bad loans and then selling them to other institutions, and what regulations did still exist, they skirted. How did we get here? People are good, right? They aren't going to take advantage of the complete anarchy are they? Does anyone remember what happened in the riots in L.A.? What happens when anarchy reigns? Without laws, the roughly four percent of people without any conscience at all (a statistic that I understand is generally accepted in the psychiatric field) would begin to find ways of bullying people. Having a lot of money would help with this, as this person would be able to hire thugs to help him. Since there would be no laws against this, he/they would have no punishment to fear. Are there very bad people in the world and among us in this country? We all know that the answer to this is yes. As I understand it, the percentage of people without a conscience is higher in two areas of our population: in prison and among CEOs of large corporations. So if you are not all that bright, you may be more likely to end up in prison. If you have no conscience and you are intelligent enough, you may well stab yourself to the top of a multinational corporation. The lesser sociopaths would probably end up working for the greater. If this sounds like the mob, that's because it is the mob. The mob would become the de-facto Government, since they would hold the reigns of power. Their thugs would be the de-facto police force, and would execute their duties just as one would expect from those with no conscience, including the torture. As I said the neo-conservative movement's theory is that all we have to do is free business from regulation and the resulting 'free market' will control itself. Let's just assume for the moment that the founders of this movement to de-regulate are business owners and CEO's. Let us also assume they thought the best way for them to make more money would be for there to be no limit on their actions, for there to be anarchy. They are basically aspiring anarchists and they need to convince the public that anarchy would be a good thing for everyone. I'm not an Anarchist. An Anarchist believes that the world would be better without laws, or Government. Anarchy, in my opinion, leads to tyranny. In other words, if laws and government are removed, a tyrant will always emerge and anarchy will have a very short life. Power never disappears, it only changes hands. That's why a government 'of the people' is such a good idea; it dilutes the power among the greatest number. If I were an aspiring anarchist, and I wanted to convince people that anarchy was a good idea, I think I'd start by conjuring up a pleasing and nostalgic image… an image that would make anarchy seem folksy…something like, say A NEIGHBORHOOD! Everyone is comfortable already with this picture so it would be perfect. I'd just propagate the idea that we don't need any laws or Government because that would take away our freedom… our freedom to take care of ourselves. If someone is committing murder or stealing from us, the neighborhood can take care of it… each neighborhood can take care of the problem in its own local way. If someone is committing murder, we'll gather in the town square and then go hunt the bastard down! A neighborhood that can take care of its own problems is a free neighborhood, not depending on the Government for help. It kind of sounds like a fifties suburban sit com, doesn't it? The 'Beaver' won't let us down. Lassie will help us if someone's trapped in the well, who needs anything other than Sherriff Andy to keep order? Have you ever seen the Twilight Zone that was set in one of these neighborhoods? It quickly turns ugly. Anyway, I'd sell my free neighborhood as the height of honesty and moral values. That's how I'd sell it, but I'd know that the lawlessness that would result would allow me to seize power. Anarchy never lasts long, because someone strong comes along and takes power. The free neighborhood I've created doesn't really exist, but if people believe in it, that doesn't matter. The neighborhood is just a euphemism standing in the place of whatever people do - and we already know what the worst people would do in order to have power and keep it. Let's say instead that I'm a businessman and I want more power, more profits, more money, but there are all these regulations in my way. There are these unions (made toothless in the eighties by Reagan), there's all these regulations like a minimum wage, safety codes, health inspections, child labor laws, etc. I need to get them out of my way. I'd probably start with laws that most people don't pay attention to, like laws that are financial in nature, laws that govern the banking industry or the stock market… for example how much interest you can charge someone on a loan. Someone who charges excess interest is called a loan-shark, but what if we eliminate the laws against this? The same guy would then go from being a thug, to being considered simply a business man. It could all seem so respectable. Once again I'd have to come up with a folksy image to attach to my ideal of financial anarchy: Oo, I know; A MARKET! Everyone loves a market: the hustle and bustle, the foods and other products. The Market doesn't NEED any laws or government; it will all be so simple: supply and demand; if something costs too much nobody will buy it. High demand will fetch a higher price. In the picture I would draw any laws or 'government interference' would be an unneeded intrusion. Those who could buy and sell without such intrusion would be FREE! A FREE MARKET! Yea!! The problem with this is that, once again, it doesn't really exist. THERE IS NO FREE MARKET… IT'S IMAGINARY. What would really happen is just the same as what happens in all other systems of lawlessness: it wouldn't last long. Those with the most money would have a clear advantage and would use that advantage to systematically increase their powers, by swallowing up the competition (mergers and acquisitions). They would pay off as many decision-makers (congress) as possible to make things to go their way. They would hire lobbyists (thousands of them) to pressure our representatives to see things their way. They would grease them up with campaign contributions (bribes). And as we look around, that is exactly what has happened and is continuing to happen. It all came tumbling down, because it doesn't really work. That's why congress just passed legislation to give $700 billion to banks to stop them from going under. It's why lawmakers held out for less responsibility for the banks and executives. This is also why at first Republican's didn't want the bail out bill, it's government intrusion into their free market, these are the republicans that do not know that there is no free market, they really believe in it's power to 'self correct'. It's why you commentators and pundits say recently things like, 'I'm a free market guy, but….' This Corporate lawlessness was such a hard sell that the corporate anarchists have employed (purchased) entire media empires to help sell it to the common man. In reality the common man is not be haggling with his neighbor, the farmer, over the price of turnips in the marketplace. Instead, he is negotiating with no less than a multi-national oil company, or pharmaceutical company, that has just about ALL of the negotiating power, since the laws are now designed with them in mind. The common man will not be negotiating at all in this world of cartels and price fixing and monopoly. The big Corporations are now the de-facto government. As soon as it can buy some laws to silence your objections, it will be the permanent government. It doesn't have to actually shut you up… not all of the time, and not right away. It has purchased enough of the media to make sure that your voice is very very quiet, and thereby marginalized. It has hired radio and television personalities who are chosen for their ability to appeal to exactly the people who will benefit from its plans the least. Since voices with alternate ideas have been effectively marginalized, all you need is to have these media personalities repeat your slogan(s) over and over and over: FREE MARKET! FREE MARKET! FREE MARKET!!! The FREE MARKET IS FREEDOM!! Now my anarchy is nearly complete. I have convinced enough people of the existence of the 'free market' which is my new definition of freedom, now my cause becomes much easier to propagate, because now the cause of corporate anarchy has become A RELIGION. My minions believe in the Free Market, even though it does not exist. They even acknowledge this when they say that it governs by 'the invisible hand'. How convenient that it is invisible. The invisibility of a god has never been a problem in any religion. 1 Webster's Revised Unabridged Dictionary
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