Of the three, the free movement of capital has been the most damaging - causing a number of continent spanning economic crises in Africa, South America, South East Asia, and lastly a global crisis in 2008. It's why billionaires pay no tax and why young people cannot afford to buy houses any more.
Economic liberalism is a disaster because markets never operate in the abstract/free way that karma is supposed to. People and governments always interfere. Always. The wealthy always tip the scales in their favour, it's how they get and sustain wealth.
Removing barriers to monopoly power has led to a sharp uptick in wealth inequality. Someone once asked me what I thought a socialist version of the board game Monopoly would would like. I said, "Dude, Monopoly is essentially a socialist game." It is set up to mimic the unlimited power that accrues to the wealthy under classical liberalism. At the end of the game one player owns all the property and has all the wealth and the other players have nothing. That is precisely the socialist view of what unfettered capitalism does to a society.
And notably this is the situation we increasingly see in the world. A few billionaires who own everything and the rest of us who have next to nothing. Bernie Sanders make this point repeatedly.
The top 1% own more than twice as much wealth as the rest of humanity combined.— Bernie Sanders (@BernieSanders) January 21, 2020
We live in a world where a handful of billionaires have extraordinary control over the economic and political life of the global community.
I don't think that's the world we should be living in.
Ironically, Adam Smith's argument against protectionism and nationalism was that it turned trade into a zero sum game. In the early modern world, the era of massive European Empires spanning the globe, commerce was carried out on a winner take all basis. Colonised countries were mercilessly asset stripped. Piracy was not only rife, but state sanctioned. Smith argued that by dropping barriers to trade, commerce would become a win-win situation - the exchange of goods and services between countries benefits both sides. And to some extent he was right. Trade does tend to raise the standard of living for everyone.
People often cite Singapore as a shining example of unfettered capitalism. But 85% of housing is owned by the government - which is the only reason most Singaporeans are not all homeless right now. Also 22% of GDP comes from state-owned enterprises. Yes, Singapore dropped most barriers to commerce, but they did not throw the baby out with the bath water the way many Western countries did. They carried out the principle role of government in liberal political theory and protected their people from exploitation - ensuring that the cost of housing remains in a sane relation to wages.
Government's role, in liberal political philosophy is to protect citizens from exploitation. This does mean fewer millionaires and no billionaires in order to both ensure competition and to ensure that wealth is distributed fairly amongst citizens. And it does involve some government interventions. Providing free education is universally acknowledged as a public good although this does not stop governments skimping on it and exacerbating inequality. Healthcare is widely acknowledged to be a societal benefit as well (except in the USA).
Capitalism is really the only viable way to run a national economy. But laissez faire capitalism doesn't create a fair or equitable division of wealth. It concentrates wealth, it transfers wealth to the wealthy. It creates a torrent of wealth upwards, not a trickle down effect. Govt has to prevent monopolies. And having just four companies dominating the globe in any given sector is effectively a monopoly. Allowing the largest companies to merge and swallow up competitors reduces competition and removes the incentives that make capitalism work.
The trillion dollar companies used their monopoly positions to squash competitors and prevent new players from entering the market. Having companies like Apple, Google, and Facebook dominate the world is killing innovation and siphoning wealth out of the real economy.
I don't see any future for communism or socialism as systems. However, more worker ownership of businesses would be a good thing. And some state-owned enterprises clearly provide benefits: housing, healthcare, infrastructure such as roads, bridges.
The other clear role for government is in dealing with systemic problems. Acute problems like the coronavirus outbreak in China can only be dealt with by national and international agencies with real power to enforce measures. And chronic problems like climate change require governments to nudge and shove business to change their behaviour. Government is the only check on industries that appear to behave as a psychotic person with no concern for consequences, no empathy for victims, and a single-minded exploitation and manipulation of everyone and everything for their own benefit.
I think the anti-capitalist movement is silly. And I've had to cut my ties with organisations like Extinction Rebellion because it is largely populated with people who have utopian ideas replacing capitalism. I agree that we have to pressure governments to address climate change, but government led capitalism is the only chance we have of bringing about the necessary change at the necessary speed. Socialist utopias are a fantasy and we need to abandon the fantasy that humanity is all going to get along and have their needs provided for free.
