BA8

 What are the specific dangers of unregulated free market capitalism? Use as many examples from the current global economic crisis as you see fit.

An unregulated free market system holds many dangers primarily because it is ran by self-interest corporations focused on profit. I remember reviewing several articles years ago, which painted a stunning portrait of corporations. These articles, explained quite definitively the stark resemblance between corporations and sociopaths. I found these articles fascinating because one could apply the same model of psychoanalysis to better understand a free market system. I remember the author listing side by side the the characteristics of both a cooperation and a sociopath. After studying those characteristics I listed them again side by side comparing characteristics of a sociopaths to a free market system. I found that they share identical characteristics except for one major characteristic. That characteristic was public support. A sociopath’s lack of empathy is a telltale characteristic and one that a free market system shares with one exception. A free market system is literally regulated by consumer needs and demands. This form of regulation works so long as consumers remain active participants in the unregulated free market system. This model will fail if consumer complacency becomes common.

Comparing our current economic down fall to the above logic reveals the roots of our crisis. A crisis created impart by corporations driving entertainment and luxuries that diminish consumer participation increasing consumer complacency. To sum it up, the primary danger in an unregulated free market system is selfishness on the part of both corporations and consumers. To take this one step further, the more selfish consumers become the more cooperations self interests are met. An analogy, which clearly resembles this model, would look like this: Place two characteristically opposite toddlers, one extroverted the other introverted, alone in a room. Quickly, the problem comes into focus. There is no babysitter to regulate the two when necessary. We have come to a time when regulation is necessary again.

Second, what role, if any, DO YOU THINK the government should have in preventing the collapse of certain so-called “free” markets?

The economic down turn is everyones fault including the government. For this reason I feel the government should have done nothing. When they stepped in and bailed out so many cooperations they violated a major law of business. That law is sink or swim. The reason I feel this is a problem is that these behemoth corporations now wield the rule of law and influence. I say this because now the corporations are acutely aware that the government won’t let them fail, sending a clear message to the market exclaiming, “Get big enough and you can do anything you like. In fact even if you decide to hold us hostage we won’t do anything about it.” Several weeks ago NPR discussed a letter from Deutsche Bank which was exactly that: A ransom note. NPR got together with Deutsche Bank’s CFO and during the interview asked him to explain why they are holding the US government ransom. The CFO acknowledged the letter was just that: A ransom note. He shamelessly affirmed the state of things and didn’t mind discussing the ransom note. One month later The US government gave them billions more than what they already gave.