Exposing government’s true role as creator of the marketplace

govt on white labelTypical conversations about government’s role in the economy are based in the false idea that the economy is an independent, natural force that functions best when left alone, i.e., free. In this worldview government action should only be a last resort. Hogwash. Government doesn’t “interfere” in markets, as this article from The Commons superbly explains, it creates them:

There is this idea, not discussed because it is so widely accepted even on the political left, that some sort of independent, free-standing market exists with its own laws, similar to those of natural systems, such as the law of gravity. Democrats want to poke, prod and regulate this market; Republicans say they want to leave it alone. But this so-called free market doesn’t exist, not even as a valid concept. Governments create markets.

It’s time for a different national conversation about the economy, one grounded in reality and one that challenges the default thinking that markets are un-shapeable like the weather.

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