Free markets?

What is a free market?To the classical economists, the objective of 19th-century reform was to replace the rentier class’s political power with democratic power to create state policies to either tax away land rent and other economic rent, or to take (return) land, natural resources and natural monopolies such as transportation, communications and other basic infrastructure needs to the public domain. A free market was defined as one free from economic rent – the land rent imposed by heirs of the feudal warlord landlord class, whose economic role was purely extractive, not productive. Natural resource rent was said to belong to the public domain as national patrimony, and monopoly rent was to be prevented by keeping natural monopolies in the public domain, or firmly regulating them if privatized.The 20th century’s anti-classical reaction has inverted the concept of a free market, Orwellian Doublethink style, to create one “free” for rent-seekers to carve out free-lunch rent income. The result is a rentier economy in which land, natural resources and natural monopolies are privatized and, in due course, financialized to turn rent into a flow of interest payments to the financial sector as the economy is driven into debt to afford the rentier overhead and debt-financed asset-price inflation for rent-yielding assets.The “freedom” of such markets is freedom from governments to tax away economic rent and regulate prices to limit rent extraction. An exponential growth of unearned rentier income and wealth in the hands of a sector diverts income away from the “real” production-and-consumption economy.

Source: The Vocabulary of Neoliberal Diplomacy in Today’s New Cold War – CounterPunch.org

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s