A FALSE DAWN FOR FREE MARKETS- LAISSEZ-FAIRE?

John Gray is among Britain’s  ” former ” conservative  thinkers who had major influence on Margaret Thatcher during her tenure as British Prime Minister.

imgres

Gray, a long-standing  unfettered free enterprise advocate , had an epiphany regarding his economic views and in 1998 published False Dawn, a highly academic discussion and prediction as to why a laissez-faire global economic system was unworkable and forecast the economic calamity that fell upon the U.S. and the world in 2008. Gray’s thesis in  False Dawn is that  the American-style unregulated free market system was the major contributor leading up to the world economic implosion of 2008!

False Dawn is a heavy reading assignment!  However, the perspective Gray brings to the discussion of  government’s role in the free enterprise system is both provocative and startling.  Of particular note is his reasoned analysis of why he now conversely believes that only government involvement in the framework of free-enterprise can prevent the income disparity that exists in both the U.S. and  international economic system.  Gray makes the case that income disparity, now seen in largely un-regulated world-wide free-enterprise economies, has led to economic perdition.  He  warns of the danger of the IMF for trying to impose the US economic model on the world.

So what is the take-away?  Has Gray gone from a Thatcher conservative to socialist?  I think not, but he is a strong advocate for the necessity of some government role in fostering growth and regulating free enterprise. The growth side of the Gray proposition comes from his advocacy of government  investment in infrastructure, scientific research and new technologies, all of which is  part of the contemporary economic and political dialogue!

Ironically, as I was finishing False Dawn  the January 12, 2012 issue of The Economist arrived with a cover story The Great Innovation Debate. While the article does not focus upon income disparity, it makes a strong case for government spending on infrastructure and basic research. As might be expected, the government investment advocacy does not come without The Economist warning of too much regulation “getting in the way of the 21st century’s innovative juices.” Many sides to a complex issue.

False Dawn is a great companion read to those fans of Tom Friedman, in particular Hot-Flat and Crowded and Robert Wright’s Non Zero. In all three cases you may wish to take notes!

NON ZERO SUM- WE ARE ALL IN THIS TOGETHER!

Conversations with friends can quickly lead to  book recommendations. A discussion of Tom Friedman’s That Used To Be Us, resulted in  a recommendation and  a gift copy of Robert Wright’s  NON ZERO SUM THE LOGIC OF HUMAN DESTINY. 

Heavy duty subject? Yes indeed! However, Wright presents the subject matter in a logical and understandable progression.  The basic  premise is that throughout the development of civilization, Non- Zero Sum cooperation, just the opposite of  Zero- Sum with only winners and losers, is what advanced our civilization from savages, barbarians, chiefdoms and tribes to a cooperative civilization.  Take a look at this quote from Wright. “Judging by history, the current turbulence will eventually yield to an era of relative stability, an era when global political, economic and social structures have largely tamed the new forms of chaos. The world will reach a new equilibrium. Or on the other hand, we could blow up the world.”

Or, “As history progresses, humans find themselves playing non-zero-sum games. Interdependence expands, and social complexity grows in scope and depth.”

“Innovate or die! Population density drives technological and social development not by creating opportunities, but by creating problems. Problems that must be solved  for the greater good!”

Not at all unlike many of Tom Friedman’s theories so ably expressed in The World is Flat,  Hot Flat and Crowded. and That Used To Be Us. Wright, like Friedman has the ability to take sweeping concepts and break them down into logical elements. He outlines how throughout history  man has managed to turn acute need and chaos into opportunity, not with a Zero-Sum  I win you lose approach, but with the concept of working together for a common good or what he calls Non-Zero!

Non-Zero is a tremendous exploration of how we have become who we are and the implication is clearly that the evolution of our civilization as a cooperative society will play a key role in what we become. 

Zero -Sum has no winners! With Non-Zero  everyone can win.  There are  many lessons here , especially in today’s political climate domestically and around the globe. If you have a friend in the U.S. House of Representatives or the U.S. Senate send them a copy!

Where Have You Gone Joe DiMAGGIO? ASKS TOM FRIEDMAN

I am 100 pages short of finishing Tom Friedman’s and Michael Mandelbaum’s new book That Used To Be Us. How America Fell Behind In The World It Invented and How We Can Come Back. However, after reading Tom’s opinion column in today’s ( October 9, 2011 New York Times) I feel compelled to get the word to you right away. 

 The column title Where Have You Gone Joe DiMaggio? poses the conundrum  that Friedman and Mandelbaum answer in their carefully crafted and researched book.  Anyone who is vested in figuring out what is wrong with America  ( aren’t we all?), and what we need to do to fix it, is encouraged to read this book now.  THAT USED TO BE US  is  about the important national dialogue being played out in print, over the air, in Washington DC  and now in the streets!  It will not go away. The book is not about philosophy but rather solutions! This quote from Friedman’s  New York Times Op-Ed  truly sets the agenda for That Used To Be Us.

“We cannot bail or tax-cut our way to prosperity. We can only, as  ( Steve) Jobs understood, invent our way there. That is why America needs to be for the world in the 21st century what Cape Canaveral was to American the 1960s: the place where everyone everywhere should want to come to start-up and make something — something that makes people’s lives more productive, healthy, comfortable, entertained, educated or secure. To do that, we need to reinvigorate our traditional formula for success — quality education and infrastructure, open immigration, the right rules to incentivize risk-taking and government-financed scientific research.”

That Used  To Be Us is worthy as a stand alone Tom Friedman read but it is even more compelling if you have read his The World is Flat (2005) and Hot Flat and Crowded. (2008)

All of Friedman’s work is a reasoned approach to identifying problems and pointing to proven and in many cases obvious solutions.  Michael Mandelbaum adds to the excellence in this new volume. Both authors  spare no individual, political party or company in bringing issues to the feet of those responsible for our problems and giving due credit  in recognition of wisdom.

When I have finished the last 100-pages I will be even more impressed  but having completed 256 and today reading Tom’s Op Ed  I am compelled to post this blog today!