Home
/
RELIGION & LIBERTY ONLINE
/
Attack of the so-called free markets!
Attack of the so-called free markets!
Mar 17, 2025 7:30 AM

Economic reality is finally catching up with the big American automakers and their suppliers, as noted by Thomas Bray in Wednesday’s Detroit News:

Around Detroit, the bankruptcy of giant auto parts maker Delphi Corp. is seen as a precursor of what’s in store for the entire American auto industry. More fundamentally, it confirms the bankruptcy of the industrial welfare state.

The powers of denial ensure it may be some time before our politicians, unions and even corporate leaders catch up to that fact. Exhibit A was the knee-jerk rant by Gov. Jennifer Granholm, who pronounced herself “angry” at Delphi. She then went on to blame the usual catalog of left-wing villains: “globalization,” “outsourcing,” “upper management,” “lack of support from Washington for the industries that made our country great” and “so-called free trade.”

Oh yes, and not enough government spending on health care.

I must pause here to note that Governor Granholm seems to be of two minds on the issue of globalization. Sure, international trade and investment are great when German and Japanese corporations partner to open a new engine plant in your state, or when you go on a trade mission to Japan in order to urge panies to outsource their jobs to… (ahem) …”invest in Michigan.” But when Delphi feels the heat of petition? Well, that’s another story.

But I’ve gotten off-topic. Returning to Bray’s article, we see that all of the reasons listed by Granholm for Delphi’s struggles lose their punch when faced with cold, hard reality:

But no amount of foot-stamping is likely to change facts. Among them: Delphi’s 33,000 unionized workers in the United States, like those of General Motors, Ford and Chrysler, still earn far above the national average in wages and benefits long after it was clear that this was no longer sustainable.

Touché.

Bray closes with an observation that we would do well to take to heart:

Globalization isn’t the enemy. It’s simply the messenger, exposing the rotten structure of the industrial welfare state for what it is, a lumbering dinosaur that can’t see 20 feet ahead of itself. Like the broader welfare state, to which it is so closely tied through labor, tax and other laws, the industrial welfare state of the 20th century is badly overdue for a rethinking.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Why Adam Smith is the self-help guru you didn’t know you needed
The Book: How Adam Smith Can Change Your Life: An Unexpected Guide to Human Nature and Happiness by Russ Roberts The Gist: Roberts, a research fellow at Stanford University’s Hoover Institution, explains the ideas behind Adam’s Smith’s forgotten classic, The Theory of Moral Sentiments. The Quote: “[Smith’s] view of what we truly want, of what really makes us happy, cuts to the core of things. It takes him only twelve words to get to the heart of the matter: ‘Man...
Lord Acton vs. the ‘New Socialists’ on Freedom
‘Lord Acton’ Public Domain Corey Robin, professor of political science at Brooklyn College and the City University of New York Graduate Center, wrote an interesting and troubling piece last week in the New York Times titled, “The New Socialists: Why the pitch from Ocasio-Cortez and Bernie Sanders resonates in 2018.” It is part chronicle of the recent rise of self-identified socialist politicians in the United States and part meditation on what people in 2018 mean when they talk about socialism....
The church that lives by the State shall die by the State
In all the articles about last week’s 50th anniversary of the Soviet invasion of Prague, few took note of one of its enduring scars: widespread and ubiquitous atheism. Some may be surprised to learn that the Czech people are the most irreligious people in Europe, not just because of decades of government-sponsored atheism, but because of centuries of government-enforced religion. When Communist officials first came to power in Czechoslovakia in 1948, undermining and eradicating religion became a top priority. The...
Why economic exchange need not be a zero-sum game
Note:This article is part of the ‘Principles Project,’ a list of principles, axioms, and beliefs that undergirda Christian view of economics, liberty, and virtue. Clickhereto read the introduction and other posts in this series. The Principle: #9B – Wealth is created when human beings creatively transform matter into resources. Because human beings can create wealth, economic exchange need not be a zero-sum game. (NB: This is a subset of the Acton Core Principle of Creation of Wealth) The Definitions: This...
The power of story in the economic imagination
In his 1958 essay,“I, Pencil,”Leonard Read took up the voice of a self-reflective pencil to tell a fictional tale that illuminated the nonfictional marvels of mundane economic cooperation. The essay went on to influence the hearts and minds of many, thanks in part to Read’s insightful mind, but also to his chosen medium:the story. “You may wonder why I should write a genealogy,” the pencil says. “Well, to begin with, my story is interesting. And, next, I am a mystery—more...
The lasting relevance of Wilhelm Röpke
The 20th century is considered one of the deadliest centuries in history. Collectivism and consolidation of power took flight, resulting in some of the most atrocious violations of human rights the world has ever witnessed. One economist was instrumental in analyzing the cause of such atrocities while offering an antidote to the worldviews in which they were rooted, in hopes that we might not once again be lured by similar false promises of socialism. Published in 1958 and later translated...
John McCain, the Hanoi Hilton, and public virtue
“Sen. John McCain, who passed away on Saturday, is undeniably the most famous prisoner of war held captive and tortured by the North Vietnamese,” says Ray Nothstine in this week’s Acton Commentary. “McCain was one of 591 Americans returned by North Vietnam over several months during ‘Operation ing’ in 1973. But in our current politicized era, McCain’s fame somewhat overshadows the leadership and lessons of many other great Americans tortured by their Marxist captors.” McCain often praised fellow prisoners as...
Why financial intermediaries fail
Note: This is post #91 in a weekly video series on basic economics. Financial intermediaries serve as a bridge between borrowers and savers. When those bridges collapse the effects can be disastrous: businesses go bankrupt, workers get laid off, and people lose their homes. These negative effects show you how crucial intermediaries are to our lives. What exactly causes financial intermediaries to fail? In this video by Marginal Revolution University, economist Tyler Cowen looks at four reasons: insecure property rights,...
Conquering famine: 3 reasons global hunger is on the decline
In confronting the problem of global hunger, Western activists, planners, and foreign aid “experts” are prone to look only toward various forms of economic redistribution. Even among nonprofits, churches, and missions organizations, we see an overly narrow focus on temporary needs and material donations with little attention to individual empowerment and institutional reforms. Meanwhile, global poverty and hunger are on the decline—a development driven not by top-level tweaks and materialistic trickery, but by a bottom-up revolution of freedom, innovation, and...
The arts of liberty: Education for image bearers
In the United States, there is a constant background critique of education. Complaints include the following: Teachers are too liberal. Professors are too abstract. Schools don’t do a good job of preparing students for work. Education costs too much, both for governments and the parents and students paying tuition. Yet despite all the dissatisfaction, we value education highly. When we are honest with ourselves, we recognize that an educated public brings with it all kinds of benefits. It is tremendously...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved