If you needed further proof of the "Commoditization of Knowledge" you
need only go to Tom Friedman's "prose poem" about outsourcing to
India in today's NYT!
CLEARLY, WE ARE NOW AT THE BEGINNING OF A GREAT "RE-THINK" ABOUT THE
ECONOMY, SOCIETY AND POLITICS AS WE HAVE KNOWN IT.
Yeah, I know that's a pretty heavy thought right now; but it's also
very likely true.
To get in the mood for this, I recently pulled down Hayek's 1944 book
THE ROAD TO SERFDOM; to see if I could find out how the Road to
Serfdom became the Information Super Highway we have today.
In Hayek's book the BIG IDEA is the great fight between PLANNED
ECONOMIES and FREE OR LIBERAL ECONOMIES.
Hayek uses the word "liberal" in the 18th Century sense meaning
personal liberty or "individualism." Verus say, "collectivism."
TODAY, 60 YEARS AFTER THE PUBLICATION OF THE ROAD TO SERFDOM, WE SEEM
TO BE REVISITING THE PROBLEMS DESCRIBED IN HAYEK'S BOOK.
Here's the problem:
Clearly, the Germans and the Russians botched "collectivism" and
planned economies big time.
If the notion of "planned economies" rested solely on the policies of
Hitler and Stalin; NO ONE WOULD EVER ARGUE FOR CENTRAL PLANNING AGAIN.
But, here's the problem;
HAYEK'S UNPLANNED, LIBERAL OR "FREE MARKET" ECONOMIES ALLOW CAPITAL
TO "WIN BY DEFAULT!"
THAT IS THE BEAUTY OF THE CONSERVIATIVE "FREE TRADE" ARGUMENT; IT IS
ESSENTIALLY PUTTING CAPITAL IN CONTROL "BY DEFAULT." BECAUSE WITHOUT
PLANNING, OR AT LEAST SOME CONTROLS, CAPITAL EVENTUALLY TAKES OVER
EVERTHING. IT'S SORT OF THE "LAW OF NATURE" FOR THIS TO HAPPEN.
OK. What's wrong with that:
WELL, NOTHING.
BUT, AS WITH ALL ECONOMIC THEORIES, IT EVENTUALLY "PAINTS ITSELF INTO
A CORNER."
AND THEN, THE "BAD STUFF" STARTS TO HAPPEN.
That's what the 1930's was all about.
And alas, that is what the debates will be about in the coming
election and beyond.
ALL ECONOMIC THEORIES TEND TOWARD "MONOPOLY," IF LEFT UNCHECKED.
FREE MARKETS TEND TOWARD "ROBBER BARRON" CAPITALISM, CORRUPTION AND
POVERTY FOR MOST OF THE POPULATION.
AND, PLANNED ECONOMIES TEND TO CONCENTRATE POWER IN GOVERNMENT
BUREAUS, AND LIMIT CHOICES AND INDIVIDUAL FREEDOMS.
I have suggested that soon to be PRESIDENT KERRY will be given a rare
ROOSEVELT MOMENT;
Where he can SAVE CAPITALISM YET AGAIN---as indeed, Roosevelt did
back the the 1930's.
IF SOCIAL SECURITY SAVED 1930'S CAPITALISM.
PERHAPS NATIONAL HEALTH CARE WILL SAVE 21ST CENTURY CAPITALISM?
One thing is for sure; DOING NOTHING IS NOT AN OPTION!
Those who would preserve the current Free Trade System had best take
a lesson from the Roosevelt Years, and re-balance the economic scales
at least a bit;
BECAUSE THE ROAD TO SERFDOM IS A TWO WAY STREET!
