Published on

Um, No - We're Not Governed "In A Way That Is Entirely Consistent With Free-Market Principles"

Following an interview with the New York Times in which he was asked about socialism, President Obama called reporters back to tell them:

"It was hard for me to believe you were entirely serious about that socialist question." Obama later said: "I think that it's important just to note when you start hearing folks throw these words around that we've actually been operating in a way that is entirely consistent with free-market principles."

Obviously, that last part is patently absurd.  

David Sirota :: Um, No - We're Not Governed "In A Way That Is Entirely Consistent With Free-Market Principles" Throwing trillions of taxpayer dollars at private banks is a lot of things - it's somewhat socialist in that public money is intervening in the market, though really it's far more authoritarian capitalist. But one thing it is not is "entirely consistent with free-market principles."

And really, so much of what our government has always done is entirely inconsistent with free-market principles. Our trade policy, for instance, includes all sorts of protectionist measures (patent and copyright protection, for example) and market subsidies, but prohibits Americans from purchasing lower-priced medicines from abroad. Our national security apparatus is plagued with no-bid (ie. anti-free-market) contracts. Anti-trust enforcement - critical to a free-market - has been gutted in the last generation. The list goes on.



Make no mistake. Change is coming. And we've got it covered.

Please choose a donation method:

Now, let me say the obvious: While in the aforementioned examples, the brushing aside of free-market principles has hurt the country, it's good news that some of Obama's proposals aren't "entirely consistent with free-market principles" - because in many cases, "free-market principles," left to their own devices, can have catastrophic consequences (see meltdown, 2009 economic). It's a good thing, for example, that Obama promised during the presidential campaign to create a publicly-funded option for universal health care. Likewise, it's a good thing that parts of the Obama administration seem more interested in considering bank nationalization.

What's not a good thing is Obama effectively validating the right wing's frame. In going out of his way to insist he's for the "free market,"  the president is signaling that he believes that the "free market" must always be worshiped and publicly glorified, even though this is an historic opportunity to reframe the entire debate on far more pragmatic, less ideological, terms.

I'm not saying he has to go out there and say he's a socialist (which, empirically, he most decidedly isn't) - but I am saying that there's a big political risk in his continuing to act as if the right's artificial economic frame must always be respected. That behavior legitimizes the "free market" metric - it says he believes he should be judged on that metric (ie. how "free market" a given proposal is), instead of being judged on other metrics (ie. how well a proposal works) that are far more important.  

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Won't Exist.

David Sirota

David Sirota is a best-selling author whose new book "Back to Our Future" is now available. He hosts the morning show on AM760 in Colorado and is a contributing writer at E-mail him at, follow him on Twitter @davidsirota or visit his website at

Share This Article

More in: