"Market fundamentalists are like Christian Scientists. They refuse
government intervention just as the faithful reject medical
intervention. Much like God’s grace, the invisible hand operates
independent of human plan.
Then something happens, like a pandemic, which tests this faith. States
around the world are now spending trillions of dollars to intervene in
the economy: to bail out banks, save businesses, help out the
unemployed. Countries are imposing export controls on key commodities.
As in wartime, governments are directing manufacturers to produce
critical goods to fill an unexpected demand for greater supply.
These are emergency interventions. The market fundamentalist looks
forward to the day when stay-at-home restrictions are lifted, people go
back to work, the stock market barrels back into bull mode, and the
invisible hand, with perhaps a few Band-aids across the knuckles,
returns to its job.
But some pandemics fundamentally alter the economy. In such emergencies,
people realize that an economy is constructed and thus can be
reconstructed. Are we now at just such a moment in world history? Will
the coronavirus permanently transform the relationship between the state
and the market?
Let’s take a look at three key markets — oil, food, and finance — to
measure the impact of the pandemic and the prospects for transformation."
Via Jennifer Freeman.
*** Xanni ***
Chief Scientist, Xanadu
Partner, Glass Wings
Manager, Serious Cybernetics