The 2015 Propaganda Award Goes To ...
Jeffrey C. Borneman | March 13, 2015
Mr. Robert Reich, with his completely vapid proclamation: "The critical choice is between the 'free market' or 'government.' Baloney. The free market doesn't exist in nature. It's created and enforced by government," (Salon). Mr. Reich is a cog in the economic propaganda machine, the purpose of which is to compound the financial illiteracy of the average American. But why is this important?
Mr. Reich's statement is not just factually false; it is purposely crafted to placate the ignorant and bolster support for government intervention and regulation. The quote is the second of three comments he made in "The 3 Biggest Myths Plaguing the U.S. Economy". Reich gets a pass on the first comment but taken as whole (below), they demonstrate the extent to which generations of falsehoods have been promulgated.
Mr. Reich's Answer to Myth Two was: "Baloney. The free market doesn't exist in nature." Really, Mr. Reich? You would have us believe that free trade or free markets cannot exist without some catalyst other than need and opportunity? That free markets cannot organically develop in "nature"? Mr. Reich demonstrates he knows nothing about the synergies of DEMAND and supply - the attraction of capital to meet DEMAND for profit. This is akin to declaring that gravity does not exist in nature.
Here we must ask, is Mr. Reich saying no free markets have everdeveloped spontaneously? While it is true that the size of government dictates the extent of control of trade, this doesn't mean free markets do not/cannot exist in nature. Mr. Reich must be addressing today's global markets via crony-capitalism, as we know free trade existed throughout human history. His statement is reminiscent of the now infamous "You didn't build that ... " line from Elizabeth Warren. This leads us to his real point in "Myth Two" - a stark declaration that justifies abuse of power:
Reich adds, "[The free market is] created and enforced by government". Simply stunning.
In fact, following Mr. Reich's reasoning, government is also outside of nature. The logical extension of his first claim that "the free market doesn't exist in nature" is that today's markets are the creation of a magical and benevolent government. It is here that any literate adult would, after straining to comprehend Mr. Reich's paradigm, simply walk away from a fool.
The adult knows that government "creates" nothing but rather injects itself into the free market. The examples are legion: Set the rules for winners and losers; establish barriers to entry; and create tax laws and loopholes, to name just a few common laments. However, by "enforcement" government steals an individual's production. In Reich's world, government is then free to claim all production for itself.
Government becomes the stork that moves on to another's nest and claims the eggs for itself. She cannot produce eggs of her own so will claim those of others. The stork is now both the mother and "the enforcer" is she not? Does she keep the chicks in line? Feed them and teach them the ropes? What if she decides to "unmake" one of the chicks due to her dislike of it - what if it is an ugly chick, misbehaves, or the nest becomes overcrowded?
Herein lies the danger in Mr. Reich's propaganda. He echoes and promotes a dangerous thought pattern which investors will recognize immediately: If government convinces the citizenry that it creates free markets, through that same power, government is then free to un-create a market by force. This is not what Mr. Reich meant with his comment "created and enforced." He would have us believe government's benevolence holds the citizen's highest achievement as its goal to justify such rampant power and choice.
The evidence of government's power of destruction is now hard to miss: The efforts to destroy the once free markets of coal; the limiting of C02 production and the EPA's attempt to own-by-default all waters including streams and puddles (even rainwater); shutting down farmers markets, etc. All of these are efforts to unmake free markets. What is of particular note to investors is that "clearing of the nest" efforts are manufacturing scarcity in the critical areas that investors should fear: Water, Food and Energy.
The fact that Mr. Reich boldly attributes God-like status to government to "create" a free market is beyond staggering but the investor must realize that he parrots only what Power wants repeated to the citizenry until it is believed. The true irony is that government owns this current economic crisis, and the levers it throws only increase the need for further crony-capitalism (control) - this is why Reich's propaganda is important now. The propaganda machine is masking the manufacturing of scarcity and the citizen is meant to look to government for answers.
To the savvy investor his claims drip with irony: We know government (the benevolent creator of free markets) cannot create DEMAND (growth) no matter how many levers of the fiscal/monetary machine it throws. As we await Reich's next claim – perhaps that government created nature - we should remember the virtues of a truly free market are anathema to the vices of interventionism and storks.
Here is the essential point: Investors should take care to note that two critical market sectors of MDEF™ are center-stage in Reich's comments and that manufactured scarcity is the goal. If you want to know more about how the MDEF™ Investing strategy is positioned in this, or other geopolitical possibilities, please contact us directly.
Read the Original Article
By: of Salon Article Date: 2015-03-12