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Ask most any red-blooded, anti-socialist, T-Publican ‘Mercin what to do about almost any problem America has, can or will encounter, and they’ll positively and proudly tell you that; the solution is a free market economy. A corollary of the free market solution to everything is that; virtually any and all rules, controls or regulations stymie a free market and are anathema to its proper function. Some people who hear the “free market is the solution to everything” theory even believe it; until they think of or are given some real life examples.
Take the Federal Aviation Authority (FAA) for instance. They create and enforce all sorts of safety standard rules and regulations, all of which cost the airlines money to comply with. The laws are in place because it is assumed that in a free market, absent any Federal, State or Local laws to follow; the airlines would cut corners on maintenance, training, etc. and thus compromise safety. But given their wish of absolute antonymous self control of regulations; the free market would create the necessary circumstances to make the airlines operate within a relatively high range of safety. If the cost cutting measures in their operations caused planes to fall from the sky on a semi-regular basis; the number of people willing to fly would decrease. That would have a negative impact on revenue for the airlines. Customers will put up with paying a lot of money to be badly treated, cramped and herded like cattle, to arrive sooner than by car; but if they might not arrive at all, that’s another matter and they might opt to drive. There is also the additional loss of revenue due to the cost of settling the law suits that would follow each plane mishap. If the savings from reduced expenditures on maintenance, training, airport equipment, etc didn’t create more profit which offset the costs created by the plane crashes; the airlines would upgrade their spending on safety. However they would do this only until the point where the amount of profit made was greater than if they had not upgraded their safety; at which point the level of safety no longer be improved. The savings from whatever cost cutting measures they could profitably get away with, unfortunately would not be used to lower the airfares, they would accrue only to the profit side of the ledger.
That’s how a free market economy works. Every penny saved, by any means, goes into the pocket of the executives and sometimes the shareholders. The same principal applies to the operations of every corporation, industry or conglomerate that is pushing for de-regulation using the argument that a laissez faire, government “hands off”, free (from regulation) market economy is good for America. It is the exact same reasoning used by Robber Barons in all ages. They also claim that free markets create jobs, implying that those jobs will be made here in America, for American workers. But virtually all the jobs that the current version of a free market economy has made have been mostly in China. Many of these are not new jobs being created; they are the jobs that used to belong to American workers that have been shipped, along with the manufacturing, to China.
Free trade is not necessarily fair trade. In fair trade both sides benefit from the commerce involved. It might appear that Americans have benefitted from the trade with China through lower prices for things that used to be made here. But many times the items that are brought in from China may appear to be the same; but are of much lower quality. Due to the low quality, if the cost per use or the frequency of replacement basis are figured, they are actually more expensive. There are also serious safety and/or health problems associated with both the manufacturing process used and the true cost of disposal and remediation of the environmental damage (if even possible). When these costs are also factored in, and these increases are added to the total cost of the product; it is very often more really expensive than if it had been produced in this country. Buying a home appliance for example for a little more money once every 15 years rather than buying a cheaper one every five years, is better for the American consumer as well as the country’s economy; in both the long and short term. Short term American jobs in manufacturing all the things we used to will raise worker wages across the board; put more taxes (even at a lower tax rate) from new workers and domestic corporate profits, into the nation’s coffers; create more jobs in support of the revitalized industry, etc. All without the need to raise any but the highest earner’s tax rates.
Long term the total savings of money wasted now in buying inferior foreign made products will total in the trillions, all of which can be invested here and used to put kids through college, retire, or whatever by American workers. This ongoing investment in this nation’s economy and future will reap positive results in an increased standard of living for virtually all Americans; increased job opportunities in virtually every area of manufacturing which we used to excel in; rebuild the options for any American to enter and thrive in the middle class. In short restore the chances for all Americans to achieve the American Dream.
A secondary but equally important and significant area of real savings that is often ignored (purposefully) is the all the future spending this country can save by using only the most environmentally safe ways of generating energy cleanly and carefully monitoring all manufacturing processes to eliminate down the road clean-up costs. When industries operate under a paradigm of a free market system that only focuses on reduced costs for increased profits; the citizens of this country always pay a substantial price in health and wealth to clean up the environmental degradation caused by the greed of corporate profiteers. The cost of cleaning up after industries which operate irresponsibly; create the need for either greater taxation of the majority of Americans or increased borrowing and debt which can often be an ever greater economic burden for this country’s taxpayers. And only stringent regulations of both the manufacturing and energy sectors of domestic industry can achieve the necessary control over today’s Robber Barons and make them operate as responsible corporate citizens and truly in the national interest.
There are of course costs in refocusing our economy toward a fair market system. Some of the people who are currently making big money by unfair means will have to either change their business practices or go to jail. However under a fair market scenario the wealthy will still be very wealthy. Perhaps they will be slightly less wealthy than if they were allowed to operate carte blanche; but so that it would have any noticeable impact on their lives. What is really the standard of living difference between making 10 million dollars a year and earning 9 million? However that extra million not taken out in profit, when multiplied by degree across all of corporate America, if used to ensure safer and cleaner production, more fair and equitable distribution of profits, appropriate tax contribution to general well being of the citizens of this country; would be the kind of reasonable and right investment in the short and long term that will make America the industrial powerhouse it used to be.
The current greed based concept of Free Market in both domestic and foreign markets must be modified and realigned into a Fair Market concept. Proper government regulations and controls, in the service of the American people, is necessary for our economy to prosper while maintaining the safe and healthy environmental standards required to keep up the high quality of life that we want and deserve. In a Fair Market system, the rich will still be rich and the poor will no longer be destined to remain as an underclass; the middle class can grow and achieve their just goals by virtue their efforts; the creative and entrepreneurial spirit of all individuals have a chance at coming up with the next new, great thing. Fairness and balance in economic systems afford more opportunity for everyone than the outdated model of the Robber Barons. Proper oversight and regulation in the name of the American people can create both a business and living environment that is safe and productive for everyone. Not even the greediest and most self-centered person really wants a world without someone inspecting the airplanes.
