Thursday, April 23, 2020

Economic Freedom

Freedom isn't free, right? This is how Kay James, President of the Heritage Foundation sees it:

"The debate in the United States over whether to move away from free markets and toward socialism may change dramatically as the latest coronavirus spreads throughout the world. That’s because in the fight against the global pandemic, we’ll likely witness one of the most compelling arguments in our lifetimes emerge in favor of free-market systems—and lives will be saved in the process."

If she had her head any further up her ass, you couldn't see her arms. If she lived in the real universe she would "witness" all of her free market dogma repudiated and crushed. In real time.

The shock of oil prices dropping into negative territory had some normally staunch true believer free market ideologues reeling a bit. These are people who worship Ronald Reagan but have found their God suddenly turned on them:

"We are worried the current disorderly market has adversely damaged the industry..." head of trading at Trafigura Oil"...some form of government assistance is likely needed."

The CEO of Montalban Oil saw it like this: "There is something wrong with that market. It's ridiculous."

The sacred Invisible Hand has somehow been distorted, corrupted, interfered with in some way that these people find unexplainable and frightening. But I'm not suggesting that simply because their faith has been shaken they will abandon their failed ideology. That would be falling into the same "rational actor" trap economists fall into. Instead they will have their memories wiped clean in a few months and they will carry on much as before, placing unlimited faith in The Market, in Animal Spirits and The Invisible Hand.

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