For some in the Tea Party, and for just about everyone with the Occupy Wall Street movement, there’s a problem with capitalism. I’ve not the slightest problem with either of these groups protesting, and doing so in large numbers.
(Congressional Majority Leader Eric Cantor’s correct about wanting to cut spending; he’s wrong to worry about the OWS group as a mob. They’re peaceful protesters, with only a few exceptions. Like the protests at the state Capitol building in the winter and spring, the OWS protesters have often gathered in the tens of thousands without any trouble ensuing.)
These protesters are wrong — very much so — if they think free markets in capital and labor are America’s problem. Our problem is not free markets, but the cronyism between government and business, a cronyism and favoritism that distorts markets to the advantage of a few. The so called government-business partnership is a bad deal, one in which a few well-placed businesspeople rig the markets in their favor through government intervention. The bigger government is, the more effective its use a weapon against business competitors.
There’s a solution, of course: a much smaller, more limited government that refrains from easily-manipulated interventions in the free and voluntary transactions between businesses and consumers, and labor and capital. Where government is small, limited, and responsible, it will not be the instrument of plutocrats’ secretive and selfish ambitions. A free people will require an open and responsible government, if they are to remain free.
Here are two quick messages that make this point, simply and plainly.
First, from the Libertarian Party, and then from the Atlas Network’s Tom Palmer:
Libertarian Party Chair Mark Hinkle released the following statement today:
“I have been following the Occupy protesters, who call themselves the ‘99%’, with interest.
“It’s true that 99% of Americans do not enjoy the special benefits of crony capitalism. Crony capitalism is very different from real capitalism. In crony capitalism, government hands out special favors and protections to politically well-connected businesses.
“The TARP bailouts, Solyndra, and the military-industrial complex are all facets of crony capitalism.
“Libertarians love free markets and hate crony capitalism.
“Unfortunately, hypocritical Republican politicians have taught a lot of Americans to think that ‘free markets’ means freedom for government and big business to engage in crony capitalism.
“That’s not what free markets are. A free market is where the government leaves businesses alone, does not attempt to pick winners and losers, does not stifle competition, does not hand out corporate welfare, and does not absolve businesses of liability for their actions. Most of our economy today does not resemble a free market at all.
“It’s unfortunate that so many businesses today go to the government begging for handouts and special treatment. I wish they wouldn’t. But the real problem is the politicians who choose to give those favors to them, at everyone else’s expense.
“I hope the Occupy protesters will start to direct their anger away from Wall Street and big businesses, and toward our government, which has done so much to destroy free markets and entrench crony capitalism.”