Watching this happen for the last thirty + years has been very, very painful, especially as it gradually has become clear what’s happened.
Sometimes I get the impression that free-market economists think of the idea of the “Free Market” as if it were an objective reality or an inescapable cosmic force, in much the same way that Hinduism or Buddhism thinks of karma. In Hinduism as in Buddhism, karma is an impersonal force, a cosmic reality, a universal law, like gravity. The karmic wheel turns as an unalterable, unstoppable grinding reality. It just is. There is no escaping the consequences of one’s actions because … karma. From a historian’s perspective, the karmic system developed in the East where there were and still are densely populated areas and a very strident competition for material resources. So the development of a system that regulated human moral behavior (how we treat each other when the population is dense and competition for resources is pronounced) became a necessity. For those who live in the East, historically, karma was the answer to this very difficult human problem. Note the moral component. Now, to press the analogy a bit, the Free Market has within it cosmic power to reward and punish certain choices or behaviors. If you act in such a way that compromises or fails to implement the Free-Market ideal in its purity, the Free Market will punish you … or at least, so the ideology goes. It is not a moral or immoral system; so the argument goes. It just is. There is no escaping it. And if we remove all artificially contrived restraints on the Free Market, then its truly benevolent nature will emerge to reward everyone … everyone, that is, who makes the right choices. The Free Market is an impersonal force. So the argument goes, and its rewards and punishments ultimately are those of one’s own making. A lot like karma. … The failure of this ideology is in its misunderstanding of human nature. How do you convince the greedy to stop being greedy? How do you stop the murderer from having murderous thoughts? How do you turn the tyrant from using violence to seize power? … So the idea of the free market is just that, an idea. It requires regulation to prevent human beings from exploiting other human beings of lesser status and power, because having had success in the market they want to use the results of their success to use people instead of providing opportunities for others to have the same success. And once those regulations are implemented by a society that has ordered its government for the protection and the prosperity of its people, then it is no longer a free market. It’s called living and working together.