Sunday, October 17, 2010

Economic Freedom

The "Economic Freedom Index" Isn't

For example, by any valid measure of economic freedom, the passage of the Digital Millennium Copyright Act would have been considered an upward surge in statism and protectionism unequaled since (at least) the Smoot-Hawley Tariff. But Heritage, a co-creator of the Index, is one of the most strident advocates, inside the pseudo-libertarian beltway establishment, of global “intellectual property” enforcement expansion.

The Economic Freedom Index fails to distinguish between the primary, structural forms of state intervention that prop up corporate power, and the secondary, ameliorative forms of intervention that attempt to moderate its side effects. The state enforces a whole host of artificial property rights and artificial scarcities which serve as sources of economic rent to privileged firms, and maintains all sorts of regulatory cartels.
If I didn't know better, if I didn't know that real free markets were the enemies of corporate power, I’d hate them myself.

Very well said. I completely agree with your statement that "real free markets were the enemies of corporate power." I find myself frustrated at those that argue capitalism is bad because... and then they talk about corporate welfare policies, policies aimed at paying off those that pay politicians etc.. That are not capitalism. And the others that claim they like capitalism and basically they just want the government to support big business interests and their policies. Real capitalism does a great job of providing economic wealth to the population. And it must be regulated sensible (that is part of capitalism not some add on). You need to regulate negative externalities (pollution etc.). You need to enforce the rule of law. It makes sense to have patents and copyright (but they need to balance the interests of the parties involved to promote societal benefit and individual reward, to encourage people to invest their time and resources).

Related: Copywrong - Have We Lost Our Capitalist Heritage? - China and the Sugar Industry Tax Consumers

No comments: