ACCOUNTING FOR A FREE MARKET & THE WGA WRITERS STRIKE

Anne Wayman at The Golden Pencil started a discussion on the WGA Strike which attracted a lot of discussions and comments (http://www.thegoldenpencil.com/2008/01/16/writers-strike-and-the-myth-of-the-free-market/).

One of the central issues was the existence or non-existence of a free market.

A free market works efficiently & effectively if two conditions are present in the market:

1 if the operators / competitors in the market are more or less on an equal footing (i.e., in numbers, in financial capabilities, in access to resources & markets, etc). Otherwise, you have an oligopoly or cartels where the big operators act in concert (whether by design or by happenstance) to dictate prices, working conditions, etc.

2 if the society has strong moral norms. Adam Smith’s the invisible hand from which the concept of a free market is derived posited that strong moral norms are required for the invisible hand or a free market to actually work for the benefit of individuals, society and the economy.

A union with its threat of a strike is one of the most effective ways for davids to contend with or against goliaths. However, like a slingshot, a strike has to be well-timed, well-aimed, with sufficient force to work. Otherwise, the strike will drag on and on and on. A relevant question, therefore, is: “Is the WGA strike well-timed, well-aimed, and has it gathered sufficient force?”

Except for a precious few, corporations in general are amoral (some are downright immoral).

I agree with Anne: there really isn’t a free market.

Image from Microsoft Clipart