Richard Brand: Free Market Myth


A few days ago Senator John McCain was on the CBS show “This Morning” with Charlie Rose asking about the campaign between Mitt Romney, Ron Paul, and Newt Gingrich.  Senator McCain was begging the Republicans not to attack Romney about his business experiences which had some very questionable results.  Senator McCain kept saying the Romney’s was the basic bed rock of the Republican Party. Free Market. Adam Smith. Capitalism and there are always businesses that have to lose and others will prosper. It was fundamental to the whole Republican philosophy of government.
 
Perhaps that is the whole problem with the Republican party. Their only idea is the Adam Smith – Free Market Economy.  The problem is that Adam Smith who did believe that in economic matters competition was good and that it produced benefits for all people.   But the problem is that “Free Market” thinking is not all the thinking that has to be done.  Free Market competition works great when there are a multitude of suppliers, manufacturers and distributors. Competition makes everybody work harder and better. But Free Market does not work when their is a “SINGLE SUPPLIER.”  There is no free market in police, army, navy, fire departments, court systems, highways, utilities, and so many more areas of our lives. The Free Market does not work when there is a monopoly or when one supplier gets so dominate that they dictate price and costs. Wal-Mart, Microsoft, Exxon, and other major players begin to distort the free market. 
 
The Free Market system also fails to have any long range considerations. One look at the housing collapse, the auto industry near failure, and every stock investor who knows the CEO’s do not really care about long term health of the company as long as they get their fortune now.  The Free Market competition is short sighted and greedy.  The banks, the investment firms, the rating agencies had no interest in long term consequences as long as they got to make their bonuses.
The Free Market system has no way of factoring in the negative consequences of its operation. The Free Market wants to make its product effectively, cheaply, and immediately. It does not worry about the pollution that it causes. It does not worry itself with the changes it makes to global conditions. Does not really consider the negative impact of exhausting its own resources. The Elephant hunters do not have a concern about killing all the elephants and causing them to become extinct.  
 
That means that the Free Market system feels no responsibility for future generations. The Free Market business model is a this year, my profit now, model, with the claimed results that it will make better products cheaper for all of us, but it has no place in its philosophy to consider the role of government in the SINGLE SUPPLIER industries, it has no interest in preventing the negative future consequences of its current actions, and it has no feeling of obligation to grandchildren and great grandchildren of the world.
 
The Republican Philosophy of Adam Smith and the Free Market have been the driving force that has produced the division of 99 and 1. It is not a healthy philosophy and it does not work well for a long future.

Rick Brand
Chair
Vance County Democratic Party
www.vancecountydemocraticparty.org
http://ricksmumbles.blogspot.com