Friday, March 12, 2010

Market Farces

Jul 15th, 20092009-07-15T04:01:45ZM jS, Y | By Michael Hinckley | Read more in: Feature

pyramidofcapitalismWatching Orin Hatch (R-UT) explain the Republican objection to Obama’s (and by extension FDR’s “New Deal”) policies is quite entertaining in its naivete – if it were not being used to deliberately mislead the American populace.

A recurrent theme in conservative rhetoric is “market forces” – one would say it is the mantra to the God of Capitalism. But in reality, it is the delusion of the rich that is passed on to the working and middle class in an effort to prevent you, the American people, from questioning why the economy seems so unfair. “Market forces” therefore become synonymous with “God’s will.”

But here’s the problem: “market forces” are a myth.

Take for example Sen. Hatch’s objection to “wages set at levels desired by Unions,” taxes on the wealthy and economic policies which stifled growth. Prior to the New Deal, unions were technically illegal organizations, and it was permissible for the owner of a factory, consortium or monopoly to fire — or worse — anyone who asked for a raise.

Market forces, theoretically, should dictate that the owner of Steel Factory A could entice workers from Steel Factory B with higher wages. But in reality, both owners conspired to keep wages at artificially low levels. On top of that, in order to keep workers in line, factory owners would foster racial divisions by threatening to hire Black/Polish/Lithuanian/Italian/etc. workers at a lower rate than you and your Irish/German/Greek/etc. friends, and you would be put out on your collective ears.

Further still, if you and your friends decided to exercise your Democratic right to freedom of assembly to discuss the unfairness of work hours, working conditions, firing practices, etc the factory boss would hire criminals and thugs (so-called “union busters”) to attack you and your group, physically beating them, killing people and burning their houses.

In short, business owners held all the power in the economy. They drove the Republican response to the Crash of 1929 and enticed Herbert Hoover into reducing the budget, reducing federal spending, and relaxing laws on monopolies in order to encourage business – all of which deepened the Great Depression. By January 1931, the unemployment rate was nearly 25%.

Fast forward to 2007-08. Large corporations, hand in hand with pro-business Democrats and Republicans, dismantle the average citizens’ ability to declare bankruptcy, dispute unfair lending practices and to seek redress for wrongful termination. Credit Reporting Bureaus, for example, represent the largest single databases of information about you, the “consumer” (please note you are not a “citizen” but a “consumer” like cattle), which is used by government and private employers to determine your eligibility for employment, housing, loans and to track your criminal record.

On top of that, Banks and other lending agencies use their incredible financial and political power to change the terms of your loans (credit cards and other) without notice and without restraint. It is not unusual for “high risk” credit cards to charge up to 30% interest – even prime customers are seeing their rates skyrocket to the double digits through no fault of their own. Beyond that, the minimum wage had not increased in over a decade, work hours have become longer, and American citizens are increasingly relying upon a never-ending cycle of debt to make ends meet.

“Market forces” are NOT God’s will and they are vulnerable to manipulation by profit-oriented CEOs, CFOs, and other executives who – I hasten to mention – receive “golden parachutes” upon their exit. Market forces, theoretically, would completely punish failure – a CEO of a failed bank would be as destitute as the bank teller in a “Market Forces”-driven world – but they receive tens of millions in compensation for a job well botched.

It is difficult for Americans, and conservatives in general, to let go of the semi-religious myth of the “free market” and the lies of “market forces,” but we must. The government – which is an extension of the people’s will (why else vote and participate) – is responsive to Democratic forces.

On the other hand, big business – businesses which have a global presence – are NOT responsive to the purchaser’s wallet mostly because they own your wallet and all the cash within and thus can not be manipulated.

A large, powerful body which the people can manipulate and influence or a large, powerful entity which is deaf to cries from shareholders and consumers alike: which is the real bad guy here?

And Sen. Hatch? Please, read a history book by an actual scholar next time.

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