The following is drawn from the new book, World Hunger: 10 Myths, by Frances Moore Lappe and Joseph Collins.
Being “free” sounds great—like being free to eat or to have a job at a living wage; so surely a “free market” is the way to ensure these important human freedoms. Right?
Unfortunately, what we call a free market can’t protect essential freedoms because it’s trapped in six enduring fictions. So let’s free ourselves, one fiction at a time.
One: A “free market” works best to meet human needs.
If by “free market” we mean one unbounded by rules, it does not exist. All market economies are governed by rules. In ours, no one is allowed to sell babies, trade with terrorists, or sell liquor across the street from your kid’s school.
While market rules are plentiful, one key, unspoken rule drives most economies today: Do what brings highest return to existing wealth—what garners the corporations’ executives and shareholders the greatest immediate gain. By this rule, wealth accrues to wealth until we end up in the United States with inequality more extreme than in Turkey or India; and in a world with two-thirds of adults trying to survive on 3 percent of global wealth.
In such a world, no matter how much food we grow, hunger is inevitable.
Two: Government necessarily impedes a vital market.
In truth, a market economy cannot thrive without government. Think of the essentials to economic success that government provides, from legal structure to infrastructure. As for government being bad for business, this can hardly be true if in economies ranking among the world’s most successful, government spending contributes a big part of the GDP. Take three of the five countries deemed most economically “competitive” by the business-oriented World Economic Forum: Switzerland, Finland, and Germany. In each, government spending accounts for about a third to more than half of the country’s GDP. And in the United States, which ranks fifth in global competitiveness, make that 40 percent.
A lot of government spending directly benefits an economy. Take Brazil. Each month, the government transfers a modest sum to poor women, if they keep their kids vaccinated and in school, directly addressing hunger. Every dollar spent on the program generates almost twice that amount in economic activity.
Three: A free market serves individual freedom.
In the 1980s, at UC Berkeley, I had the opportunity to debate perhaps America’s most celebrated “free market” champion, the late Milton Friedman, coauthor of Free to Choose. He claimed that the market serves freedom by enabling people to make choices based on their values.
I then pointed to the obvious. If true, the market serves human freedom only on one condition: that people have purchasing power to express their values in the market. Thus freedom, using Friedman’s own definition, actually expands as societies set rules ensuring that wealth is widely and fairly spread. By the same logic, a market operating without rules to prevent wealth from amassing at the very top denies most individuals’ “freedom to choose.” And, in many societies that includes the freedom to choose to eat.