Market fundamentalism

From Wikipedia, the free encyclopedia

Market fundamentalism (or free-market fundamentalism) is a term coined by George Soros, to criticize the belief that the free market is always beneficial to society. As it is a pejorative term, the people and organizations it refers to will generally reject the label. The meaning can be considered economic liberalism or laissez-faire capitalism applied logically and consistently in all fields.

1 Philosophy
2 Targets
3 See also
4 External links

[edit] Philosophy

It is based on the idea that the free market is always beneficial to society, that the common good is always best served by market forces, the premise Adam Smith made in The Wealth of Nations. However, the so-called "free market" has become highly manipulated over the last two and a half centuries. A fundamentalist approach to market capitalism, not unlike fundamentalism in religion, reduces it to a strict adherence to financial bottom line. This single focus on profits has become the mantra for market fundamentalists so that the markets are frequently in conflict with the public good.

Critics of this fundamentalist attitude argue that markets sometimes produce beneficial results, sometimes negative results. They argue that where the market works for the public interest, it should be allowed to do so, and where markets work against the public interest, state regulation should step in.

[edit] Targets

As a broad pejorative, the term may be used to attack many groups. The following groups can be said to advocate strongly against any state regulation of a free market.

Objectivists publicly and absolutely adhere to this philosophy. This group, spearheaded by the Ayn Rand Institute (after the author of the same name, Ayn Rand, née Alissa Rosenbaum, who wrote Atlas Shrugged and The Fountainhead), however, reject any appeal to the "public good", as altruism is considered to be immoral. Instead, their support of laissez-faire capitalism comes from desiring a "complete separation of economics and state."
Anarcho-capitalists believe in the absolute right to private property, and envision a market system completely free of state regulation.
Libertarians generally believe in limited government powers, and reject regulation of a free market. (see also:Minarchism)