Free Market Myth

Regulation is everywhere. Let’s choose who benefits.

The extraordinary financial collapse of recent months has been commonly described as a testament to the failure of deregulation. The events are indeed testament to a failure—a failure of public policy. Blaming deregulation is misleading.
In general, political debates over regulation have been wrongly cast as disputes over the extent of regulation, with conservatives assumed to prefer less regulation, while liberals prefer more. In fact conservatives ... Full Story »

Posted by Dale Penn
Dale Penn
4.7
by Dale Penn - Feb. 18, 2009

Using the example of copyright and patent regulation and the recent "too big to fail" financial industry bailout, Baker makes an enlightening and compelling case that neither political party is really in favor of deregulation. While he sites no independent experts in making his case, he holds expert status himself (see bio link). A great read!

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Mike LaBonte
4.1
by Mike LaBonte - Feb. 18, 2009

Not well sourced but very well written. The claims used for evidence are not so controversial that the shortfall in sources is much of a problem.

We have personal freedom only because rules prevent us from taking away each others' freedoms. Likewise, we only have free markets because of rules. The notion that markets are free only when rules are removed is ludicrous. But Baker is on the right track that the real question is "which rules?".

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Jim Lang
4.0
by Jim Lang - Feb. 18, 2009

This opinion piece effectively makes the case that as we look across the spectrum of commerical activities, the issue is not really more or less regulations but rather what type of regulation and for the benefit of whom. The mechanisms suggested for dealing with intellecutal property may not be practical across all areas of endeavor but the discussion is rational and engaging. The same goes for the bankruptcy discussion. The piece makes a departure, though, in treating "too big to fail" as a regulation rather than a mind set. The former is formally established while the latter isn't. So with regard to financial institutions, the issue may actually be whether to have more regulation.

I have mixed feelings about intellectual property protection but appreciate the purity of the argument. I share the author's disdain for lack of accountability regarding financial institutions but think that his argument that it is the result of a conscious regulation is faulty.

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Patricia L'Herrou
4.3
by Patricia L'Herrou - Feb. 18, 2009

an enlightening and refreshing look at how our economics system works in interactivity with government. written with understandable examples and clear explanation. i imagine that the average person is unaware of this type of analysis. it seems that our congressional representatives are either unaware of it or content with the status quo since, as implied here, change in regulations would be less wasteful and accomplish more in achieving desired goals.. the writer refrains from including his own ideology and goals.

as with a number of other articles i read on newstrust, i wish there were means to providing much greater dissemination of this article.

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Norman Farrell
4.7
by Norman Farrell - Feb. 18, 2009

A very concise description of economic regulation, this tears away instinctual definitions and redefines arguments for or against public supervision of private affairs. This is an intellectual challenge to both liberals and conservatives. Neither likely understands regulation issues as well as they think they do.

This helps me reconsider my own points of view about regulation and government involvement in commerce.

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Paul Belle-Isle
4.7
by Paul Belle-Isle - Mar. 5, 2009

This is an excellent essay examining the fundamental issues in the debate about regulation in this country.

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Kevin Barry
4.1
by Kevin Barry - Mar. 5, 2009

Very interesting article explaining the nature of what is generally considered "the free market", and how it has largely been controlled through the years through government intervention (patents, copyrights, legislation). While interesting, it gets a little too side-tracked in explanations of some "examples", and thus takes a while to get to the thrust of the argument (and overall it could stand to be a little more concise). However, it shows a nice view of the big picture of what the government's role is (and could be) in how our economy operates. Recommended reading.

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Gregory Kruse
4.9
by Gregory Kruse - Feb. 17, 2009

My compliments to the Boston Globe for featuring this economics special report. Dean Baker has thought this through in the course of his research and produced a superb article laying out the way to regulate the economy in a fair and deliberate way, forsaking the "more or less" regulation model that has only served to obfuscate the motives of the political factions. What more can you ask of a reporter?

I worked through the golden years of labor, and I benefitted greatly from regulations allowing unions to strike and engage in collective bargaining. This may have allowed unions to go a little too far, and resulted in everybody else above us on the food chain to demand more. As Baker says, regulation, free from ideology, can be easily changed or adjusted. Fastened to ideology it's either/or, and that can be seen in the Republican desire to eliminate unions. They should actually ... More »

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Dwight Rousu
3.1
by Dwight Rousu - Mar. 5, 2009

There are a lot of disparate conceptualizations presented in this article that promote thinking about regulation issues. The article seems to overreach in extending ideas from patent, copyright, and bankruptcy as generalities that preempt other views of regulation in all other arenas. The results of right wing policies are not distinguished from the intents of right wing politicians, nor from their dissembling justifications for those policies.

This framing would be interesting as a starting point to generate an informed and articulate discussion from multiple thinkers on this subject.

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Richard M. Armstrong
5.0
by Richard M. Armstrong - Feb. 17, 2009

I thought the article was balanced and caused me to think about the issues it raised.

I especially liked the argument over the new bankrupcy law. Very good analysis.

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Craig Yoshioka
4.7
by Craig Yoshioka - Feb. 18, 2009

Fantastic description of the way things really are.

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Patricia Stroud
5.0
by Patricia Stroud - Feb. 18, 2009

It actually addresses the issues, rather than just responding mindlessly to what government officials, celebrities, or pundits are saying.

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