Advocates of pure capitalism insist that the "invisible hand" must be allowed to work its magic - and that any effort by government to guide its actions can only burden markets and distort their natural operation. Others argue that [Adam Smith's] writings on morality and natural empathy suggest that Smith would reject much of the libertarian dogma justified in his name. In any case, pure capitalism has never existed in the real world, and only the most ideologically committed of economic anarchists believe that it should. Markets can't meet every human need, fear and greed ensure that markets will never work perfectly, and no market participant enjoys perfect information.
The End Of The Free Market by Ian Bremmer
Those last points about why pure capitalism will never be able to operate perfectly in the real world (i.e. a giant ball of dirt floating in space inhabited by psychotic apes) seems so obvious as to be scarcely worth singling out for emphasis. Ignoring seemingly basic facts about reality is typical of extreme economic ideologies, whether they be utopian visions of anarcho-capitalism or communism. But hey, a man can dream, right?
With The Collapse Of Globalism still fresh in my memory, Bremmer's book is helping me understand the mechanics and goals of the kind of state capitalism that is practiced by some nations, particularly China. After the financial crisis of 2008/2009, we saw the rise of state intervention into the more 'free' economies of the West. This prompted some who were skeptical of global free markets to further question the ability of laissez-faire capitalism to provide sustainable growth, while bolstering their own position that the state should play a role in guiding economies to meet certain public and political goals.
I likes me some Ian Bremmer, and his G-Zero book greatly influenced how I've come to view international politics and the power of nation states to act and lead on the global stage. The End Of The Free Market is proving to be an equally enjoyable and informative read.
With The Collapse Of Globalism still fresh in my memory, Bremmer's book is helping me understand the mechanics and goals of the kind of state capitalism that is practiced by some nations, particularly China. After the financial crisis of 2008/2009, we saw the rise of state intervention into the more 'free' economies of the West. This prompted some who were skeptical of global free markets to further question the ability of laissez-faire capitalism to provide sustainable growth, while bolstering their own position that the state should play a role in guiding economies to meet certain public and political goals.
I likes me some Ian Bremmer, and his G-Zero book greatly influenced how I've come to view international politics and the power of nation states to act and lead on the global stage. The End Of The Free Market is proving to be an equally enjoyable and informative read.
