The inscription on sculpture “Survival of the Fattest” reads ‘I’m sitting on the back of a man. He is sinking under the burden. I would do anything to help him, except stepping down from his back.’ It is a powerful statement about the growing gulf between the rich and poor.
Today even the poorest in our western societies lead lives that would be considered lives of impossible material luxury by those of a century ago. Light and heat at the flick of a switch, literature and music available to all, telephones you can carry in your pocket. In comparative terms we are materially much richer, and, in the developed West we seem to be living in the post-scarcity world. Our problems now, are rarely those of inadequate supplies of essentials such as food, energy, or shelter. Indeed, many of our problems relate to those of excess, for example the problems of obesity or excessive fuel usage and global warming, and unfair distribution of resources.
This unfairness occurs at home and abroad. At home, we in the developed world, have witnessed increasing inequality with extreme wealth concentrated in a few hands. The gap between rich and poor seems to have grown at an alarming rate. Abroad even greater disparity is apparent. There are still areas of the developing world where the basics for subsistence are missing and problems of famine, drought, hunger and thirst still exist and kill people daily.
What can we do to tackle these problems ? We know that the global expansion of wealth arose from the success of the market economy and voluntary cooperation, with the aid of the ‘hidden hand‘ in developing new processes and products. However, this is a consequence of ‘free markets‘ where individuals working on their own initiative, and in their own interest, compete to make goods and services which are desirable and useful to others.
The market economy has many intrinsic safeguards. Production of undesirable or unwanted goods will fail; providers of better goods and services will prosper at the expense of poorer providers; the system itself (by the influence of supply and demand on the price of a good) guides development and there is no need for any central planning agency. Further, competition tends to drive profit down. Competition benefits the consumer and is a spur to the producer. Indeed, it has been said that extreme wealth, or very high profits, are a sign that there is not a free market economy and that something is wrong (1). A recent report by Oxfam clearly suggested that most extreme wealth is not “meritocratic” but rather the consequence of rent-seeking activities an over close relationships between capital and the political class (2).
Free trade should also help the developing world. Were trade free,then these countries which are often wealthy in natural resources would be able to benefit from them. Our history of imperialism, when nation states rejected trade with these countries in favour of subjugation and theft, has left a legacy of poverty. Even today, the European Union acts as a trade group to benefit the farmers and producers within the Union at the expense of those outside its borders.
Everywhere we look, the political class works with business to limit free trade and to concentrate wealth and power in the hands of a few. We need to promote the free market to tackle poverty, to encourage trade and competition to drive down profit and excess and be clearly pro-market but not pro-business, to be pro-market but anti-capitalist (3).
(1) Are billionairesfat cats or deserving entrepreneurs ?
(2) Extreme wealth is not merited
(3) Free Market Anti-Capitalism, the Unknown Ideal