Free Marketers Still Fighting Back

A reader sent me this email in response to my Huff Post article on Chile (I argued that Chile survived the recent earthquake because of government regulation, not despite it, as some free marketers have argued). Typos not mine:

this is a pretty daft article, and more

journalistic free market bashing for the sake of it.

i think its pretty hard to argue that

thepinochet regieme,a fascist government that willfully assinated

and imprisoned his oppostion could be counted as a good model of

thefree

market, so you discount your own arguments against free marketsif we actually genuinely had a free

market we might

actually be able to see how it works, but as it stands we’ve never

really had

one, although Thatcher in the UK came close and the UK really benefited

in the

end.

if you want a good example of free

market against

government run behemoths, you need only compare the results of NASA with

that of

Virgin Galactic. In a few short years we may have sub orbital travel

hopping

from one side of the world to another, all organised and funded by free

enterprise. On the other hand NASA has motored through trillions of

dollars had

more than half a century and has frankly been of very little benefit to

the

general public… yippee we have memory foam matterasses and microwave

ovens and

a morbund space station floating about.

I’ll go through the readers baseless assertions one by one.

1. Chile under Pinochet wasn’t a good example of a free market because he was a tyrant.

The vast majority of right wing economists, and notably Milton Friedman, refer to that time period as ‘The Miracle of Chile’. Friedman, although not a fan of Pinochet’s methods said the following: “The real miracle of Chile is that a military junta was willing to go

against its principles and support a freemarket regime designed by

principled believers in a free market. The results were spectacular.”

2. Britain came close to being a true free market under Margaret Thatcher and Britain benefited from it.

This is utter, utter nonsense. Under Margaret Thatcher, the monetarist policies implemented to curb inflation did the opposite and also exacerbated unemployment. Before the Falklands war in 1983, Margaret Thatcher was one of the most unpopular prime ministers in British history almost exclusively due to her failing economic policies. Thatcher also gave giant subsidies to the military industrial complex and didn’t decrease government spending at all after 17 years in power. And as for Britain being all the better for Thatcher’s ‘free market’ economy, just ask the millions of children that were plunged into Dickensian style poverty due to the extreme cuts in social welfare.

3. Virgin Galatic is an example of the ingenuity of the private sector while NASA is an example of state funded inefficiency.

Firstly, Richard Branson built a business using airplanes funded by tax payers money, and trains built by the state owned British Rail. The Spaceport where Branson will be keeping his Galactic spacecrafts is also being funded by the tax payers of New Mexico. Secondly, NASA spinoffs provide a wealth of benefits to society, (the insulin pump being a small example) not to mention a the huge economic benefits to the local population and many private subcontractors.

Plus, NASA also put a man on the moon – and I haven’t seen a private company come close to doing anything like that.

Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.