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Free Markets As Dead As Communism

By W. James Antle, III on 12.23.08 @ 10:55AM

Expect to hear a lot more of this in the year ahead, and not just from such noted economic thinkers as Arianna Huffington: "The collapse of Communism as a political system sounded the death knell for Marxism as an ideology. But while laissez-faire capitalism has been a monumental failure in practice, and soundly defeated at the polls, the ideology is still alive and kicking." Ms. Huffington isn't done yet, concluding, "It's time to relegate free market fundamentalists to the same standing as Marxist ideologues: intellectual curiosities occasionally trotted out as relics of a failed philosophy."

No mention of the Federal Reserve's role in creating the bubble, artificially low interest rates, Fannie Mae or Freddie Mac, the Community Reinvestment Act, corporate welfare and crony capitalism, the increasing socialization of risk and growing federal role in the economy via the bailouts, the increases in spending and regulation that occurred even under the Republicans, or mark-to-market accounting. All of that is just "blame shifting." Of course, no one argues that China's economic growth over the past 20 years has breathed new life into communism. Why? Because we all know that the Chinese Communist Party no longer practices what can be called communism where it really counts for the economy. Similarly, it is foolish to call what the Republicans have delivered "laissez-faire capitalism" unless the term has no meaning besides a mixed economy run by the GOP. Whatever the failings of mainstream conservative economics -- and there have been some -- the truly laissez-faire Austrian school of economics was more accurate in its predictions about the current crisis than Huffington's allies in Congress.

View all comments (5) | Leave a comment

Mary| 12.23.08 @ 11:55AM

Of course, no one argues that China's economic growth over the past 20 years has breathed new life into communism. Why? Because we all know that the Chinese Communist Party no longer practices what can be called communism where it really counts for the economy. Similarly, it is foolish to call what the Republicans have delivered "laissez-faire capitalism" unless the term has no meaning besides a mixed economy run by the GOP.

Wasn't Tito's Yugoslavia a mercantile communism too, just more sophisticated? Is the US headed towards something similar?

The impotence of all those presently in power is best illustrated by Noonan's description of President Bush alerting everyone to the latest development in the manner of a cuckoo clock.

And Mr. Paulson? What was the near-terrorism he employed all about? Have all those bad 20s been collected? Why was the request to take the time to think this through an impossibility?

We're not a free people, the bailouts tell you that. We're to some sort of cabal born.

Robert Stacy McCain| 12.23.08 @ 12:22PM

Great. Huffington marries an oil billionaire, blows $25 million trying to get him elected to the Senate, divorces him, makes off with half his money, becomes a Democrat, and denounces capitalism. It's like a morality play or something.

Ran| 12.23.08 @ 7:39PM

There's a term for mercantile communism... What, vaguely Italian. Fascinating word. Tip o' me tongue... B'gins with an "F". Drat. It'll come to me. To us all. That is, if Bush and the Demo Congress haven't already delivered.

Ben Gee| 12.23.08 @ 8:19PM

China is no longer a communist country but it is a socialist country. There are no pure capitalist economies because the rights of society as a whole has to be considered. In China, the rights of individual is subordinate to the right of the whole society. If one follows the rules, there are no problems. If one do not want to follow the rules, there is a problem.
In the West, we have rules too, one can get into trouble by not following the rules too.
China is a very different country than it was 30 - 40 years ago. China had moved much closer to the West in many ways and aquired some of our problems. People now move much freer than they used to and freer movement come with more crimes. Is there a happy medium?