We touched on the issue of non-free ‘free markets’ a few days ago: http://darwiniana.com/2012/10/21/idiocy-of-american-free-markets-fans-a-system-run-by-chinese-secret-police/, and now this excellent article at Counterpunch explores the issue at depth: …
http://www.counterpunch.org/2012/10/24/the-dark-age-of-money/:Milton Friedman and the Rise of Monetary Fascism
The Dark Age of Money
by JAMES C. KENNEDY
The contrast of free market capitalism and Monetary Fascism is telling. The article deserves reading in full, but I have two objections: the correct statement that Adam Smith’s critique was really mercantilist, and nationalistic is acute, but the issue of nationalism is problematical now: the faustian pact with globalization demands now a global solution…
The contrast with Adam Smith’s free market ideology, to me, is misleading. I am sure that Milton Freidman’s Monetary Fascism could in theory be reformed with ‘true Adam Smithism’, in principle, but at this point the outcome of finance capitalism surely discredits the source and origin, as with Adam Smith.
How will we ever again unscramble such a mess, to replace it with its immediate ancestor? It could never happen. the correction would require revolution, and noone would fight a revolution to restore Adam Smith…
If you often wonder why ‘free market capitalism’ feels like it is failing despite universal assurances from economists and political pundits that it is working as intended, your intuition is correct. Free market capitalism has become a thing of the past. In truth free market capitalism has been replaced by something that is truly anti-free market and anti-capitalistic. The diversion operates in plain sight.
Beginning sometime around 1970 the U.S. and most of the ‘free world’ have diverged from traditional “free market capitalism” to something different. Today the U.S. and much of the world’s economies are operating under what I call Monetary Fascism: a system where financial interests control the State for the advancement of the financial class. This is markedly different from traditional Fascism: a system where State and industry work together for the advancement of the State.
Monetary Fascism was created and propagated through the Chicago School of Economics. Milton Friedman’s collective works constitute the foundation of Monetary Fascism. Knowing that the term ’Fascism’ was universally unpopular; Friedman and the Chicago School of Economics masquerade these works as ‘Capitalism’ and ’Free Market’ economics.
The foundation of Friedman’s corrupting principle is that the investor (money to be more precise) has no duty, obligation or covenant to anyone or anything. Friedman’s ‘Market’ is not subject to ‘any’ human standard of morality, political limitations or national interests. Money is free to act without bounds or conventions. Nothing is prohibited as long as the market can provide a “clearing price”.
The fundamental difference between Adam Smith’s free market capitalism and Friedman’s ‘free market capitalism’ is that Friedman’s is a hyper extractive model, the kind that creates and maintains Third-World-Countries and Banana-Republics, without geo-political borders.