Many people think that the free market is wonderful. It allows people to work hard, accumulate wealth and improve their standard of living. This is only partly true.
The free market is also a place where the strong exploit the weak and smart, dishonest people get away by cheating the naive. For example, look at the complicated financial instruments introduced by dishonest people to make hundred of million dollars, which led to many ordinary people being financially destroyed. This is the bad aspect of the free market.
As we rebuild the future, we have to find an alternative to the free market. I like to introduce the concept of the "fair market", which has the positive aspects of the free market, but it inclujdes the restraints to prevent cheating and exploitation.
The fair market requires the elected leaders to discharge their responsibilility in looking after the interest of the ordinary people. The leaders cannot just sit by and leave matters to be decided by the "free market". These leaders with a clear vision of what is good for society. They have to embody the values of honesty, fairness, public service and courage.
We also need the people to understand that they have to be more self-less, rather than be selfish or self-centered. This is best explained in the following poem by Martin Niemoller.
First they came for the Jews
and I did not speak out because I was not a Jew.
Then they came for the Communists
and I did not speak out because I was not a Communist.
Then they came for the trade unionists
and I did not speak out because I was not a trade unionist.
Then they came for me
and there was no one left to speak out for me.
and I did not speak out because I was not a Jew.
Then they came for the Communists
and I did not speak out because I was not a Communist.
Then they came for the trade unionists
and I did not speak out because I was not a trade unionist.
Then they came for me
and there was no one left to speak out for me.
Tan Kin Lian
4 comments:
Keynesian economics already talked about how, when left to its own devices, the 'free market' will necessary bring problems you highlighted onto itself-- and it's not only the financial market.
The thing is, whether it's elected leaders or "fair market" you talk about, what we're really looking at is REGULATED markets, and this is something economies in the West will not accept. In Asia, we've had a history of regulated markets because commerce and politics are not divorced, but we've had criticisms from western economies on this.
One big question: who will monitor the monitors in regulated markets?
Unfortunately in the real world, I think a fair market will not happen. Because in many countries there isn't a better alternative to the current govt. Even when an alternative emerge, initially it look promising but later turn out to be just as bad or even worse. You can see quite a number of such examples in this world.
Ultimately I believe it is still the law of the jungle, that is whoever is stronger, faster, more agile etc will have food and survive, not fairness, honesty or kindness and what not.
Let us speak up before it is forgotten, before it is swept under the carpet , before it is believed to be the right thing.
Let us speak up against the unethical practices of the insurance agents , the FIs , the RMs and the insurance companies.
Let us speak up against dubious, complicated and scam financial products that are flooding the market.
Let us expose the whole life and endowment and cashback anticipated products that are short changing the consumers without their knowing them.
Let us expose the system that is loaded against the consumers.
Let us expose all of them and keep it up until we see changes all round when consumers are fairly treated and rewarded.
Let us see more regulations to regulate the activities and internal governance of the insurance companies, the banks; the activities of the salespeople, the ethics and the integrity.
Let us see enforcement and not lip service.
Let us see a level playing field where all parties play by the same rules.
If not there won't be anybody to speak up again
Mr Tan,..
Most people think we have a truely free-market, but that is not true..
How can our market be free when the most important commodity ie the medium of exchange and its price (ie interest rate) is controlled by the central bank?..
Ours is a cronistic/nepotistic free-market for making the rich richer, the poor poorer... where the savers and prudent are systematically penalised.. The wealth concentrated in the hands of a few well connected and well position individuals..
Remember, the first to receive newly printed money will always be the richest... The last receivers of money is effectively robbed by the "counterfeiters"..
ym
mises.org
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