The recent wave of accounting fraud scandals signals the end of an era. Been the disappointment and resentment of American capitalism that leads so far tectonic ideological shift from laissez-faire, and self-regulation to state intervention and regulation. This will reverse the trend dating back to Thatcher in Britain and Reagan in the United States. It would also partly fundamental - and way more ancient - the principles of free marketry in serious doubt.
Is seen to markets and self-regulation, and exchanges, self-assembling of information, goods and services. Adam Smith's "invisible hand" is the sum of all the mechanisms of interaction that leads to optimal allocation of economic resources. Great advantages of the market over central planning and specifically the lack of random and self-awareness.
Market participants go about their own selfishness, in an attempt to maximize their utility, oblivious of the interests and work for all, and in order to prevent people from direct interaction with them. One way or another, over the chaos and noise, the structure comes out of the system, and efficiency are unmatched. Man is capable of producing better results deliberately. And therefore, is any intervention, and intervention to be harmful to the functioning of the economy.
This is a simple step from this ideal view back to the doctrine of natural, who preceded Adam Smith, who put forward the principle of "passage, and allow" - a battle cry out of the hands. The natural religion. Market, as a gathering of individuals, they thunder, and the title was certainly on the enjoyment of rights and freedoms to all and all. John Stuart Mill, balancing state intervention in the economy in time and his influence is great, "Principles of Political Economy," published in 1848.
Was not affected by the evidence of market failures - for example to provide public goods at reasonable prices and plentiful - and this theory wrong back in the last two decades of the century. And became privatization, liberalization and self-regulation buzzwords and ephemeral part of a global consensus propagated by both commercial banks and multilateral lending institutions.
It also applies to the professions - accountants, stockbrokers, lawyers, bankers, insurance companies, and so on - self-organization was founded on the belief in long-term self-preservation. It is assumed that rational economic actors and moral agents to maximize their usefulness in the long term by observing the rules and regulations of equal opportunities.
It seems this noble tendency, unfortunately, have been manipulated by greed and selfishness and love of self and an inability to delay gratification is mature. Self-regulation fails spectacularly to conquer the very human nature that its removal led to the most intrusive tricks developed than ever before. In both cases in the United Kingdom and the United States, and the government is much more widely and heavily involved in entering into the details of the traffic, and accounting of securities, and the World Bank than it was two years ago.
But morality and the myth of "order out of chaos" - went further than that - with his supporters in the exact sciences as well. Was imbued with a culture very deeply from trade and converted. It is not surprising that the Internet - a chaotic network with an anarchic modus operandi - flourished at these times.
It was the dot-com revolution less about technology and new ways of doing business - and I do not know how to be reconciled with a combination of ingredients, and stir well, and hope for a better future. Person, for example, offers a model of a linear income how to translate "eyeballs" - that is, the number of visitors to a Web site - to money ("financial benefits"). He considered this to be true dogmatically, miraculously, traffic - a chaotic phenomenon - will translate into profit - until now as a result of hard work.
The privatization itself such an act of faith. Were transferred wholesale to the hands to maximize their profits - state-owned assets, including facilities and providers of public services such as health and education. The implicit belief was that the price mechanism will allow the planning and organization are not. In other words, it was assumed that the high prices to ensure uninterrupted service. Followed by the failure may be expected, - from electricity utilities in the state of California to railway operators in Britain.
Simultaneous crumbling of these urban legends - the power of liberation from the Internet, in the self-regulating markets, Proceedings of the unleashing of privatization - inevitably gave rise to a backlash.
The state has grown to enormous sizes in the decades after World War II. He is about to grow and digest some of the sectors so far untouched. To say the least, it is not good news. But freedoms - brought on ourselves by thwarting the work of that invisible regulator - all supporters of individual freedom and individual responsibility in the market.
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