Free enterprise??

Discussion in 'Current Events' started by 804brown, Jan 26, 2012.

  1. 804brown

    804brown Well-Known Member

    The Secret History of Free Enterprise in America
    When thinking about the forces of nature and the nature of infrastructure, a slightly longer view of history is instructive. And here’s where to start: in the U.S., despite its official pro-market myths, government has always been the main force behind the development of a national infrastructure, and so of the country’s overall economic prosperity.
    One can trace the origins of state participation in the economy back to at least the founding of the republic: from Alexander Hamilton’s First Bank of the United States, which refloated the entire post-revolutionary economy when it bought otherwise worthless colonial debts at face value; to Henry Clay’s half-realized program of public investment and planning called the American System; to the New York State-funded Erie Canal, which made the future Big Apple the economic focus of the eastern seaboard; to the railroads, built on government land grants, that took the economy west and tied the nation together; to New Deal programs that helped pulled the country out of the Great Depression and built much of the infrastructure we still use like the Hoover Dam, scores of major bridges, hospitals, schools, and so on; to the government-funded and sponsored interstate highway system launched in the late 1950s; to the similarly funded space race, and beyond. It’s simple enough: big government investments (and thus big government) has been central to the remarkable economic dynamism of the country.

    Government has created roads, highways, railways, ports, the postal system, inland waterways, universities, and telecommunications systems. Government-funded R&D, as well as the buying patterns of government agencies -- (alas!) both often connected to war and war-making plans -- have driven innovation in everything from textiles and shipbuilding to telecoms, medicine, and high-tech breakthroughs of all sorts. Individuals invent technology, but in the United States it is almost always public money that brings the technology to scale, be it in aeronautics, medicine, computers, or agriculture.

    Without constant government planning and subsidies, American capitalism simply could not have developed as it did, making ours the world’s largest economy. Yes, the entrepreneurs we are taught to venerate have been key to all this, but dig a little deeper and you soon find that most of their oil was on public lands, their technology nurtured or invented thanks to government-sponsored R&D, or supported by excellent public infrastructure and the possibility of hiring well-educated workers produced by a heavily subsidized higher-education system. Just to cite one recent example, the now-familiar Siri voice-activated command system on the new iPhone is based on -- brace yourself -- government-developed technology.

    And here’s a curious thing: everybody more or less knows all this and yet it is almost never acknowledged. If one were to write the secret history of free enterprise in the United States, one would have to acknowledge that it has always been and remains at least a little bit socialist. However, it’s not considered proper to discuss government planning in open, realistic, and mature terms, so we fail to talk about what government could -- or rather, must -- do to help us meet the future of climate change.
    Tomgram: Christian Parenti, Big Storms Require Big Government | TomDispatch