Washington Post business columnist Steven Pearlstein, who won the 2008 Pulitzer Prize for commentary, on Friday contended “it is not the protectionists of the AFL-CIO or CNN who are primarily to blame for the erosion of public support” for free trade, instead:
The blame lies squarely with a business community that continues to support Republican politicians who refuse to raise the taxes and spend the money necessary to provide the economic safety net for American workers that a free-market economy has not, and will not, provide.
In his column bannered across the top Friday's “Business” section, “Wave Goodbye to the Invisible Hand” Pearlstein argued that “just as the Gilded Age gave way to the Progressive Era and the New Deal gave way to the post-war era of big government, big business and big labor, the current era of free-market capitalism seems to be giving way to something else” as “the larger truth may be that the social and economic costs of the next increment of globalization probably outweigh the benefits for many people, and that reality has now been reflected in the political marketplace.”
An excerpt from the August 1 column by the ex-reporter:
....Here in the United States, consumers have already realized most of the possible gains from importing different and cheaper goods -- any further liberalization won't help them much. But because the government has refused to deal, in any serious way, with the dislocation and economic insecurity that increased trade has spawned, too many lower-skilled workers have concluded, with reason, that they are the inevitable losers from globalization.Let's be clear: It is not the protectionists of the AFL-CIO or CNN who are primarily to blame for the erosion of public support for trade in the United States, as bone-headed as they may be. The blame lies squarely with a business community that continues to support Republican politicians who refuse to raise the taxes and spend the money necessary to provide the economic safety net for American workers that a free-market economy has not, and will not, provide.
Trade is hardly the only area in which open, unregulated and lightly-taxed markets have failed to deliver economic and social outcomes that Americans consider acceptable.
Despite the fact that the U.S. health-care system is the most privatized and market-driven of any in the industrialized world, it has become one of least efficient and effective, with extraordinarily high costs, mediocre results and a large and growing pool of working families with little or no insurance and inadequate care.
Deregulated energy markets have, for the most part, failed to provide a steady supply of affordable electricity to businesses and households due in large part to imperfect competition that has allowed the industry to manipulate prices and earn above-market returns. These same energy markets failed to anticipate the increased global demand for oil and natural gas and to make the necessary long-term investments in new supply and alternative sources of energy. More recently, they produced a speculative price bubble that has brought the auto and airline industries to their knees.
As market failures go, however, few have been more spectacular than the massive misallocation of credit and mispricing that led to the giant housing and credit bubble of recent years....
—Brent Baker is Vice President for Research and Publications at the Media Research Center



















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What free market??
August 3, 2008 - 05:39 ET by sarcasmoThis biased rag is trying to continue the Enron myth, that regulated markets are "deregulated" when politicians do something stupid designed to get their incompetent buddies rich. The repeated examples of antilibertarian bias & economics 101 cluelessness in this piece worry me. The socialist bailout of bankers, once again, has nothing to do with capitalism and everything to do with socialism, no matter how prestigious the newspaper lying about what's to blame.
JMR
The tax & spend drug war looks racist in the real world.
I agree. The blame lies
August 3, 2008 - 05:50 ET by motherbeltI agree.
The blame lies squarely with a business community that continues to
support Republican politicians who refuse to raise the taxes and spend
the money necessary to provide the economic safety net for American
workers that a free-market economy has not, and will not, provide. (emphasis added)
If that's not promoting socialism, I don't know what it is. And they want more of it.
Obama's theme song
Definitive Socialism if ever there was one.
August 4, 2008 - 10:57 ET by kirch66American Heritage Dictionary - Cite This Source - Share This
so·cial·ism Audio Help (sō'shə-lĭz'əm) Pronunciation Key
n.
"The moment you give up your principles and your values, the moment you laugh at those principles and those values, you are dead, your culture is dead, your civilization is dead. Period." - Oriana Fallaci
I'm not sure which bankers. . .
August 3, 2008 - 06:25 ET by WingletDriveryou're talking about because there have been quite a few in the past couple of months. But even more egregious is the continuing support of Freddie and Fannie, which were social safety net programs run by the government.
They failed miserably--even worse than any bank out there--mostly due to graft and mismanagement by Dem political insiders who were put in cushy jobs at these "corporations." The free market was going to correct the errors of these failed government programs (Oh that horrible free market which decides winners and losers based upon the notion of fiscal responsibility) until the government once again took from those of us who didn't overspend on a mortgage and gave to those who lived beyond their means or who callously mismanaged Freddie and Fannie in the first place.
I'm not sure there were no Republicans
August 3, 2008 - 08:30 ET by sarcasmoGetting those sweet salaries at Fannie & Freddie, too, but that's not even my main point. That salary money's gone forever.
My real point is that it's the ultimate form of antilibertarian bias to attribute these failures of soft socialism to capitalism, as this author is trying to do. It's as if we're under anything like a free market system, when we're clearly not, or Bear Stearns would have been allowed to fail along with Fannie & Freddie and anything that's coming next. It's maddening, and this kind of lizzardcrap economics deserves an editorial response from someone far more eloquent than me.
JMR
The tax & spend drug war looks racist in the real world.
I guess Pearlstein thinks
August 3, 2008 - 05:42 ET by ConservativeRexI guess Pearlstein thinks he's writing way above every one's head and that no one pays any attention anymore. All he has done here is re-hash the tired old policies of Mussolini. In his mind the corporations are ruining this country or in other words corporatism is the problem. His version of fascism will save the country. He is saying this individualism crap has got to go! The state can run everything much better! In typical fascist fashion, the only reason he cares about the little man is so he can use him as a tool for his ends, think "every man a king", and you have it. Just warmed over tripe, and nothing more.
Yep
August 3, 2008 - 06:40 ET by 10ksnookerRepackage Fascism and add some Marxism and we are all supposed to bow.
Look at me, I won a Pulitzer for <strong>commentary</strong>, I am so smart, so I say we raise taxes we should raise taxes. Well let me tell you where you can put your Pulitzer.
You notice how the leftwing whack-jobs never talk freedom and liberty, American greatness and accomplishment? Stunning reveal, isn't it ...
Absolute Garbage.
August 3, 2008 - 07:10 ET by heldmywFrom the article:
To begin, his statement that "...safety, fairness, economic security and
environmental sustainability" are missing from the American capitalist model is rubbish. U.S. safety, worker protection, and environmental concerns are some of the best.
As for "security"? Welcome to Earth, Pal, the planet doesn't guarantee you a free ride for the duration of your existence. I'm sure the buggy whip makers of the last century didn't piss and moan like you do when their jobs disappeared.
For the rest? It's the failing EU model... Remove incentive, pay off the idle, and tax yourself into the toilet. Let's just kill off output and efficiency for the sake of some feelgood dysfunctional socialist twaddle.
Pearlstein has a piece that is not original, not new, and certainly not a good idea. Doubtless it plays well in Progressive-Land, though.
With that thieving scumbag
August 3, 2008 - 08:17 ET by fitzfongWith that thieving scumbag Al Gore "winning" the Nobel Peace Prize and this economically illiterate clown "winning" the Pulitzer Prize, there's a clear indication as to what the value of such awards is...ZERO.
"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." -Ronald Reagan
fitzfong.blogspot.com
When Government Controls WE Lose!
August 3, 2008 - 08:29 ET by ChasvsDo people not realize that once a Government controls our lives, we all lose?
Universal Healthcare will result in Government decisions on the value of life and who will live and who will die based on the cost of care and the "value" of the life to "Society"
Don't think for a second that the Liberals won't cut off those who are a drag on "Society" once they have complete control! If they can't tax it, they won't need it, so the Old and infirm will be the first of be told to go die quietly and stop being a burden on the Great Society!
It's happening already in Oregon, which will be th emodel for the rest of the nation if BHO and the rest of the Demofacists get into complete control!
Same old bilge
August 3, 2008 - 09:46 ET by nkviking75....Here in the United States, consumers have already realized most of
the possible gains from importing different and cheaper goods -- any
further liberalization won't help them much. But because the government
has refused to deal, in any serious way, with the dislocation and
economic insecurity that increased trade has spawned, too many
lower-skilled workers have concluded, with reason, that they are the
inevitable losers from globalization.
One of the most compelling realities in life and economics is that things change, and people need to adapt or die. That is not the responsibility of government. People don't need to wait for government to adapt to changing conditions.
The blame lies squarely with a business community that continues to
support Republican politicians who refuse to raise the taxes and spend
the money necessary to provide the economic safety net for American
workers that a free-market economy has not, and will not, provide.
Government can only raise taxes so high. Eventually they'll be so high that any increase in the rate leads to a decrease in revenue. The burden of taxes becomes a drag on the economy. That's why Reagan's tax cuts brought in record revenues to the treasury. (Unfortunately, a Democrat Congress increased spending even faster.)
Despite the fact that the U.S. health-care system is the most
privatized and market-driven of any in the industrialized world, it has
become one of least efficient and effective, with extraordinarily high
costs, mediocre results and a large and growing pool of working
families with little or no insurance and inadequate care.
Our system certainly has problems, but it beats waiting several months for a government run system to allow routine procedures. The medical system is geared to protecting itself from lawsuits, including frivolous claims. That is a major factor in the high cost.
Deregulated energy markets have, for the most part, failed to provide a
steady supply of affordable electricity to businesses and households
due in large part to imperfect competition that has allowed the
industry to manipulate prices and earn above-market returns.
The "deregulated" energy system has been blocked by government from developing new sources of oil and coal, from expanding oil refinery capacity, from building new nuclear generating plants, and in some cases putting up high voltage transmission lines.
This guy's Pulitzer is for writing, not economics. He's just better at spewing the same liberal bilge we've been hearing for several decades. He doesn't understand economics at all.
When you put the clowns in charge, don't be surprised when a circus breaks out.
Oh, I get it now.
August 3, 2008 - 10:41 ET by richflanjCapitalism is a failure because it isn't socialism. See, it's simple.
<sarc off>
Say hello to unemployment
August 3, 2008 - 14:18 ET by CobraMan"Wave Goodbye to the Invisible Hand"
And say hello to unemployment! If we raise taxes on businesses, we increase their expenses and that will take away the very revenue that that those businesses rely upon to pay their workers. Reduce revenue and you are forced to reduce employment (isn't that right, Washington Post?). Why can't a supposed "business columnist" understand that basic fact of business?
Has anyone else noticed...
August 4, 2008 - 11:10 ET by kirch66Has anyone else noticed the unemployment rate rise in the month AFTER the rise in minimum wages? This is exactly what you are talking about. And these $250,000 individuals which BHO and the Dems are talking about taxing the Sh*T out of when they take control are mostly small business owners who run LLCs and show their company profits in their personal incomes. These are 70% of the employment force in this country and they are about to be hobbled by this socialist BS. And the poor dumb-masses who vote aren't educated to understand basic economics or differentiate political philosophies. Remember the poll a few years back that showed ~80% of college students thought "from each according to his ability..." was in the US Constitution!!! These are the focus of the Obama-nation campaign. This is why we get this crappy anti-capitalist regulation and control which CAUSES the problem!!
"The moment you give up your principles and your values, the moment you laugh at those principles and those values, you are dead, your culture is dead, your civilization is dead. Period." - Oriana Fallaci