Comment by jfengel
9 hours ago
Weirdly, right at the moment the US economy is tanking because of severe departures from market fundamentalism. By the people who most claim to be pro capitalism.
9 hours ago
Weirdly, right at the moment the US economy is tanking because of severe departures from market fundamentalism. By the people who most claim to be pro capitalism.
There's no departure from market fundamentalism, the belief in shareholder value being supreme is still very much the current Zeitgeist.
As much as the USA's administration is jerking around with trade, the fundamental principle of what governs any corporation is still market fundamentalism: returning value to shareholders, nothing else.
Shareholders are pretty grumpy right now. They've lost a ton of money.
I'm sure that some economist will asset that this will produce more shareholder value in the long run. But the stock market suggests that shareholders do not currently believe that.
We might have just exited from the era where shareholders mattered.
Capitalism is incompatible with free markets. Capitalism means all the wealth goes to those with the most capital, while free markets means the wealth flows freely in all directions.
> Capitalism means all the wealth goes to those with the most capital, while free markets means the wealth flows freely in all directions
I don't understand this distinction, why wouldn't capital accumulate under free markets? The freer the market the more capital accumulates.
In a freer market that today you would have to pay a massive toll every time you went to the grocery store, because the road owner has monopoly on that route, that would lead to much more wealth accumulation.
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To me that is the biggest win in public discourse from capitalists: conflating markets with capitalism, as if free markets could only exist under unbounded capitalism. Which, as you say, is incompatible. Capitalism does not want free markets, nor foster free markets, the best end result for a capitalist is the abolition of a market under the control of a monopoly.
Markets are fundamental, and a natural result of human socioeconomic order. Capitalism not at all.