Capitalism and "Fools"

Last week I read an article about capitalism, more specifically, the free market and consumers, who are identified as fools.  Consumers are "fools" because they fall for the allures, the tricks, the deceptions, etc. of producers, that is, the companies/corporations.

It seems to me that the author is a pessimist, a big-time pessimist.  I think that is characteristic of those of his end of the political spectrum.  The fault of capitalism lies not with consumers, who often make irrational, even stupid decisions, but with the system itself, that is, the free market/invisible hand.

How condescending, that people are now so stupid that they can't make choices for themselves.  You can see where this is leading, can't you?  There's "a catalog of errors on the parts of consumers and investors."  And the only solution is for the all-knowing, benevolent government to come in and save them from themselves.  And worse, such pessimism derides those with optimism, seemingly sealing the future for doom.

There's a place for government in this "free market."  It should protect consumers from nefarious practices, preventing producers from inflicting deliberate and deceitful harm through things such as pollution, defrauding people, making false claims, etc.  Outside of that, well, maybe it should be "hands off."  Government's record isn't exactly spotless when it steps outside of those boundaries.

I agree, people make some ill-informed, irrational, and even stupid decisions.  After all, why do people still smoke, abuse alcohol, and eat to the point of gluttony and obesity?  Perhaps less detrimental, why, for instance, do some people buy monthly or annual health club memberships when paying by individual visits would be cheaper?  Is that economic stupidity or convenience or overly optimistic goal-setting?

Do the use of Face Book (esp by the young) and drugs(dependence on prescriptions and otherwise), conspicuous consumption to the point of economic detriment, etc. reflect stupidity?  I don't know.  But such actions are based on individual choices.  Should government step in and limit such individual choices, that is, our freedom?

People, of course, are manipulated by producers.  Advertising exploits human weaknesses at times.  So what?  If consumers don't have enough cash, resort to credit, and overextend themselves to buy the come-on products, whose fault is that?  Companies that advertise?  How about the consumers themselves?

In the past few decades, American society's definition of "needs" has changed.  People have bought into the notion that they need the latest cell phones, high-def televisions, and other things that are hardly necessities.  And that notion has been endorsed not only by the perpetrators, the companies selling such products, but also by government.  Is it the fault of the free market--or of gullible people?  More so, have we created a society of envy, of greed, that demands we have such frills as basic necessities?

And if government is the solution, to save us from ourselves, where was it during the economic recession of the past 11-12 years?  Was it the fault of the free market or of government failure to monitor derivatives, the increasingly complex security transactions, as well as the too cozy relationship between credit reporting agencies, investment banks, and government agencies themselves?

I suppose, if this pessimistic view of economic consumers is valid, what might be said then of voters, of popular participation in politics?  If we are manipulated in our economic and financial decisions, are we also in our political decisions?  If we increasingly make harmful, even stupid economic choices, might we do the same with our political choices?  If consumers are merely the pawn in the hands of manipulating producers in the free market, what are voters in the hands of deceitful, even dishonest politicians and political parties?

As much as I dislike this pessimistic view, I find myself fighting not to agree with it.  But where I differ is that I don't blame the producers/advertisers.  "The fault, dear Brutus, is not in our stars, but in ourselves."