Free-market capitalism is so 20th century

Free-market capitalism is so 20th century

29 Oct 2009

The panel debate the motion that free-market capitalism is so 20th century.

Arguing in favour of the motion are Paul Mason, Ian Bremmer and Jean Pisani-Ferry. Paul Mason begins by explaining his definition of free-market capitalism. He focuses on the ideology itself rather than the actual system of capitalism as, surprisingly; true free-market capitalism has never been put into practice. He states that actual free-market states are ‘rigged and un-free’, and believes that capitalism has been empirically proven wrong, due to its failure to warn of impending crisis. Ian Bremmer continues by stating that non-western countries are ‘moving on’ economically, yet the west is not. China, Russia and Saudi Arabia are experiencing ‘state capitalism’, where the state is the principle actor and arbiter of the economy. Therefore, power is shifting from the commercial to the political. Jean Pisani-Ferry finishes by arguing that markets and governments are both imperfect institutions. However, they must be effectively combined to promote our collective values. He also notes that western nations are entering into an economy of scarcity, which will be further affected by climate change and an aging population.

Arguing against the motion are Stephen King, Kim Campbell and Vince Cable. Stephen King begins by stating that free-market capitalism did not exist in the 20th century, yet did in the 19th, as the size of the state has increased massively over the last one hundred years. He also notes that the huge tax revenues from risky bank practices encouraged governments not to intervene before the financial crisis.
Kim Campbell argues that the free-market principles of Adam Smith have never been properly implemented. Furthermore, Adam Smith was deeply committed to notions of public morality, and firmly believed that capitalism should operate within an ethical framework – the kind of framework that was totally deconstructed during the Bush administration. Vince Cable argues that free-market capitalism is the world form of economic system – except for all the others. He believes that capitalism does not have to be laissez-faire, and does have a role for public goods and government intervention. The answer lies in breaking up institutions that are too big to fail and force them to compete. Cable believes that the ideal models of free-market capitalism are the systems used by the Scandinavian nations.

First Vote: 178 For, 281 Against, 156 Undecided

Final Vote: 162 For, 419 Against, 35 Undecided

The motion is defeated by 257 votes.

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