[net.politics] Capitalism...

jonw@tekmdp.UUCP (06/10/83)

mprvaxa!tbray has touched on a basic truth:

   ....we're living in a finite environment and will surely destroy 
   ourselves unless we evolve an alternative economic structure (to
   laissez-faire capitalism) which does not require open-ended growth 
   just to survive.

Anyone who longs for the good old days of pure capitalism need only consult a
history book for the reasons behind the origin of our present regulatory 
bureaucracy.  As I remember it, there existed a state of industrial anarchy in
the latter 1800's.  For example, different railroad companies were actually 
building parallel tracks in some parts of the country, and then charging 
exorbitant rates in those regions where there was no competition, in oder to 
recoup losses.  It was finally necessary to form the FTC (the first regulatory
agency) in order to deal with the situation.

Nowadays there are additional reasons why a purely free-market economy cannot
work.  Here is one of them:

There is no incentive for companies to bear the responsibility for
pollution control.  Without strong environmental legislation, companies are
practically forced to pollute indiscriminately so as not to lose market edge
through the increased costs incurred by pollution control.  

Anyone who thinks that companies are getting a raw deal due to environmental
laws, should realize that the costs of pollution do not magically go away if
the laws are loosened up.  The public ends up footing the bill through
increased health care, crop damage, waste dump cleanup, etc.  If there are no
environmental laws, the public in effect subsidizes pollution.

Still not convinced?  Here's a good example of the free market in action.
During the 1940's, Hooker Chemical dumped millions of pounds of interesting
substances at Love Canal.  Instead of spending five million (1980) dollars
to properly dispose of the waste, they chose to dump indiscriminately.  As of
1980, the government had spent over 70 million dollars in dealing with the 
problem, and they will certainly have to spend a great deal more to actually 
clean up the mess.  And of course, there is no way to put a dollar figure on
the human suffering involved.

Given my pro-environmental bias, I can only view Reagan's free market
philosophy as a cynical attempt to benefit the plutocrats at the expense of the
public.

						Jon White
						Tektronix
						Aloha, Ore