Friday, April 14, 2017

Naming the Results of Corruption as "Free Market" Failures is Damaging to Society

We shouldn't allow those using plain corruption to call it "free market." They, and their talking heads, seek to do so in order to prevent sensible actions being taken to address the corruption. It is much better for them if people think what they are doing is capitalism instead of just being criminals. That is the same as allowing kleptocrat dictators to call what they do "democracy."

Corruption destroys the potential value to the public. It does that when it corrupts free markets. And it does it when it is used for other purposes (corrupting the rule of law, etc.).

If we call corruption - "free market" - it makes it difficult to design the correct counter measure to address the damage being done to society.

Those practicing corruption win if those that what to have society address the damage being done think the problem is free markets instead of focusing on the real problem which is corruption. There may well also be some issues with how free markets work and therefore putting in place political adjustments is sensible to discuss in terms of "free market" adjustments. But most often people complaining about the failures of "free markets" are complaining about straight up corruption. And failing to address the problem for what it is results in what we see now - those problems growing instead of being addressed.

Related: We Need to be More Capitalist and Less Cronyist - Political and Corporate Cronyism are not Capitalism - Monopolies and Oligopolies do not a Free Market Make

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