Saturday, May 15, 2010

Free Market Capitalism

. I keep hearing only Free Market Capitalism will save us.
Free-market capitalism has come to dominate our economic thinking. It has even led to the mistaken view that there is no other variety of capitalism than the free-market kind. Capitalism is the view that a nation’s economy, for the most part, is better left in private hands rather than being centrally planned by government. In this respect it differs from political and economic systems.

There is no such thing as free-market capitalism . The government championship of free markets make exceptions for patents, and copyrights, which constitute government regulations that favor publishing companies and pharmaceutical companies.
DNA and Seed genes can belong to companies who can ruin our lives if we use them. Seeds farmers have had free and used for 600 years in America are now owned by private companies.

With labor exploitation, poverty, industrial pollution and the lack of compassionate efforts, capitalism has a history of destruction. Sure one could argue the entrepreneurial value and goods for services and jobs. But these can be had by alternative economies.

There is also further empirical evidence to show that even when individuals act selfishly from perfect economic freedom they rarely enhance the good of others, or even themselves. One such bit of evidence is known as “the tragedy of the commons.”

“The race to the bottom,”, whereas the optimal outcome for each individual is not to cooperate while others do cooperate. An example is tax competition among nations. Each nation may benefit from having a high tax on corporate profits to promote income equality. But nations can benefit individually with a lower corporate tax rate to attract business from other nations. This hurts all but the one that lowered the tax rate. To be competitive, each of the other nations would have to lower its tax rate, thereby “racing to the bottom” with a result less favorable in promoting income equality and the good of all.
The poverty rate in the world is 90%.

Universal Health Care and other social programs have a evidence that they do work and are beneficial to society. With our current Corporateocracy our futures maybe hopeless.
Wit such a record of destruction, it is difficult to see how Free Market Capitalism will save us. Is this a Utopian pipe dream? Of course.