Many of recent accounting fraud scandals signals the end of an era. Disillusionment and disappointment at the American Capitalism can still see the ideological shift from laissez faire and self-tectonic on government intervention and regulation lead. This is a reversal of trends from the Thatcher in Britain and Reagan in the United States. This will also cast some fundamental – and more old-fashioned way – the principles of free marketry in doubt.
The market is considered to organize, self-assembling, exchanges of information, products and services. “Adam Smith’s invisible hand” is the sum of all interaction mechanisms that result in the distribution of economic resources. great advantages over a centrally planned economy to a market instead of arbitrary and lack of self confidence.
Market participants go about the business fascist and try to maximize their benefits without compromising on the interests and actions of all, the bar, they interact with directly. Somehow, out of the chaos and turmoil appears, the structure unparalleled regularity and efficiency. People are not in a position to deliberately produce better results. So, each intervention and interference that is harmful to the functioning of the economy.
This was a small step from this ideal world preceded look back to the Physiocrats, Adam Smith, and expressed the doctrine of “laissez faire, laissez passer” – a hands-off war cries. They are a religious. Market, as the agglomeration of individuals, they thundered, of course, entitled to the rights and freedoms granted to every person to enjoy. John Stuart Mill was weighed against state intervention in the economy in his influential book on time and beautiful, “Principles of Political Economy,” published in 1848.
Undeterred by installing evidence of market failure – for example, to affordable and plentiful public goods – the theory of this defect with a vengeance in the last two decades of the last century. Privatization, deregulation and self-regulation and the terms of purpose is part of a global consensus propagated by both commercial banks and multilateral lenders.
What applied the professions – to accountants, stockbrokers, lawyers, bankers, insurers, and so on – that the self is based on the belief in the long-term self-preservation. Rational economic players and moral agents are to maximize their usefulness in the long-term compliance of rules and regulations of the level playing field.
This tendency seems noble, unfortunately postpone by greed and narcissism and immature inability to meet was damaged. Self-regulation failed to beat as spectacular human nature, which raises their destruction of the most disturbing public authority strategies ever created. In the United Kingdom and the United States is the government involved far heavier and more pervasively in the details of the accounting has to do, and banks and not just two years ago.
But the ethos and myth of “order of chaos” – with his supporters in the exact sciences as well – ran more. Culture is really to sink in the trade and change. This is not surprising that the Internet – the network Mess with the modus operandi of the anarchists – the development of these moments.
Dotcom revolution is less about technology than about new ways of doing business – mixing all these irreconcilable ingredients, stir well and hope for the best. Nobody, for example, offered a linear model, how to translate the revenue “eyeballs” – ie, the number of visitors to a site – money (“GET”). The dogmatically held to be true, that a miracle, traffic – a chaotic phenomenon – will translate to profit – until today, the work exhausting.
Privatization itself was such a leap of faith. State-owned assets – including utility companies and providers of public goods such as health and education transfer – wholesale were in the hands of profit maximization. The implicit belief is that the price mechanism is the lack of planning and regulation to provide. In other words, to guarantee higher prices, the service should be interrupted. Predictably, followed the failure – of energy companies in California to railway operators in Britain.
The simultaneous collapse of an urban legend – the power of the Net, self-regulating free market would cause the benefits of unbridled privatization – a reaction.
State terrible conditions in recent decades acquired since World War II. The aim is to continue to grow and digest the few sectors hitherto left untouched. To say the least, this is not good news. But we libertarians – proponents of both individual freedom and individual responsibility – have brought to ourselves, to thwart the work of invisible regulator – the market.