Free Markets: Good or Evil?

I used to think that things were black and white as follows: communism/socialism is evil, capitalism/free markets are good.  I still think communism/socialism is evil, although I can see what appeals to people about them, and why good people are attracted to them (Read Wild Swans by Jung Chang for some good food for thought on that one).  I'm just not so sure that capitalism/free markets (will refer to as "free markets" in the future) as they are known today are so great.

Let me clarify.  I think that if people have high moral values, pure, unregulated free markets work wonderfully.  It is just like this quote on government by James Madison, "What is government itself but the greatest of all reflections on human nature? If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary."  If angels were to govern men, neither external nor internal controls on businesses would be necessary; however greed and powerlust come into play.  The almighty dollar (really funny money anyway; why does it have such a hold on us?) comes before our fellow-man, preserving beauty, quality in craftsmanship, creating true value, being wise stewards.  When we care more about making money than about these things, that is when free markets start to lose their appeal.

I've read lots of books that have influenced my thinking about these matters.  Henry Hazlitt, Frederic Bastiat and Ludwig von Mises are some of the great writers who have helped me see the wonders and benefits of free markets.  But I've also seen documentaries and read some books, Shock Doctrine by Naomi Klein being one of them, that have helped me to see that when a business gets too big, and gets too much power, there can be huge problems with that.  Read the book and watch some of my recommended documentaries, and you might see what I mean.

HOWEVER, I don't really believe that when a business gets that big with that much power (so much influence on foreign and domestic policy, for example) that they are working within a TRUE free market, because they now have powerful interests watching their backs and hampering the competition.  Therefore, I believe those particular businesses or industries need to be reigned in.  But I don't think that they will be reigned in by the powers-that-be, because the powers-that-be have too much of a vested interest in the industries.

I have always, in the past, been against regulations and rules.  There are way too many of them.  Read The Death of Common Sense: How Law is Suffocating America by Phillip K. Howard for an interesting read about that.  I think that The Death of Common Sense is an appropriate title for our time. We have too many prohibitive rules that make it hard for the little guy, and we let the businesses that profit from warmongering, polluting, and generally causing grief and suffering slip through the loopholes.

What can we do?  Obviously most of these businesses won't self-regulate, and our elected (and unelected) officials aren't stopping things.  So it is up to us, the little people, to educate ourselves, make more conscientious choices about who we elect and who we support, and speak up without being ashamed.  I know, easier said than done.  We need to be open to learning the truth, wherever it comes from.  Black and white really have many shades, and just because I believe A and you believe B doesn't mean I am all right and all good, and you are all wrong and all bad.  Yes, there are absolute truths.  But not everything has only one answer.

Summary to all this rambling: If men were angels, free (unregulated) markets would work the best.  Because men are not all angels, some (not ridiculous and excessive) regulation is necessary. Also, the little people need to do what we can.  Working together, we can make changes.

Other summary to all this rambling: We need to start seeing where we agree, and work from there.  Be open to seeing why someone has the viewpoint that they do.  This was brought home to me last night when I was watching Why we Fight.  In the special features, the director talks about how he had been in red states and blue states (showing his movie), and then interrupted himself to talk about how red and blue are just a way to divide us; how our country is really more purple.  If we can be kept focusing on our differences, then we are distracted from working together on important things.

One other somewhat related thought.  When you read these books, or watch these movies, you may despair, thinking there is no hope; there is too much corruption, everyone is bad.  I think it is the opposite.  I think there is a lot of corruption and evil, but I think most people are basically good.  Not perfect, but most want to do good things.  I think we all contribute in some way to the bad that is going on; not through evil intent, but through ignorance.  The more aware we are, the more we are able to fight the evil.  It is not a hopeless fight, because if most of us want to do good, then we will do good once we are aware.  So we need to spread awareness.  Not in a militant way, but in a loving way.  My journey to the awareness I have come to has not happened all at once.  Just ten years ago I would have ardently opposed some of my current views, but most of my current views are about things I was generally ignorant of even ten years ago (what will the next ten years bring?  What an exciting thought!).   You never know who is ready to be open to learning more (or when...sometimes it is years after something is suggested to me before I am ready to dig into it), so educate yourself, and take other people along for the ride.  And remember, it is a ride.  We don't ARRIVE all at once.  We just reach scenic views along the way.  Enjoy!