With the current financial turmoil gripping the world here are many who are having their “I told you so moment”. Told us that the market can not possibly work, that deregulation is a moral crime. Unfortunately the truth is that the free market has nothing to do with the current crisis, neither is deregulation to blame, immoral behavior and misunderstanding the concept of the free market in order to justify greed and self preservation, as well as lack of more theory to allow us to understand the free market.
Knowledge economics allows us to see the mistakes that occurred that have led to this scary situation that is facing the world. One concept that is part of the foundation of the free market is the concept of free trade, that for greater human prosperity there must be trade. Some are dismissing this concept saying look it is trade that has led to Americans been heavily indebted and it is cheaper goods from
If Motorola on the other hand decides that is manufacturing costs are too high in the
Free market requires that over and above natural products we exchange knowledge, a manufactured good is a symbol of knowledge, knowledge creates it. Free trade is about societies exchanging knowledge. That Motorola manufactures goods in
That so many goods are manufactured in
Encourage the world to respect knowledge; all goods are the result of knowledge that is the only way now to gear for long term global sustainable growth. Compete with knowledge, and only the free market can guarantee that all our knowledge will reach the market. Do not fight the innocent market, it did not betray the American consumer, the American worker. It is all a circle, but unfortunately the captains of industry did not understand that, they reached an illogical conclusion that the lowly could suffer but they wouldn’t. A moral abstract like the free market will not allow immoral behavior to go unpunished, the immoral conclusion that they could win the world without competing, get a foothold in
You can not for example help anybody by killing yourself, it is not practical, help somebody by letting them develop my own knowledge and exchange it with your knowledge.
I hope I make sense, one can not write articles that are too lengthy, you would get bored. But somebody has to speak for the market. You have to look at the root cause of a problem. You cannot talk of a global solution without discussing the issue of knowledge, trade is about exchange of knowledge, think about it.