Posts Tagged ‘Richard Wolff’

Free Market Economics

December 31, 2020

            “In our culture the concept of the market is akin to religion. In fact, for many people the fantasy that their life is shaped by a market is a substitute for thinking that it was shaped by a deity, or else the market itself is understood as a deity.” “A market is a way for people to distribute resources and goods. That’s all it is. The human race for most of its history has not used markets to do that. When I say distribute resources, I mean land. Who’s going to get what piece of land to cultivate?” (Richard Wolff from Occupy the economy: challenging capitalism by Richard Wolff; interviews with David Barsamian) 12-30-20 Henry Fountain writing for the New York Times headlines: Sale of Arctic Drilling Leases Draws an Unusual Taker. It May Be the Only One. “After a three-year push by the Trump administration to open the Arctic National Wildlife Refuge in Alaska to oil drilling — an effort that culminated in a rush to sell leases before the White House changes hands — in the end the only taker may be the state of Alaska itself. With a Thursday deadline [12-31-20] for submitting bids for 10-year leases on tracts covering more than 1 million acres of the refuge, there is little indication that oil companies are interested in buying the rights to drill under difficult conditions, to extract more costly fossil fuels for a world that increasingly is seeking to wean itself off them. Amid the uncertainty, a state-owned economic development corporation voted last week to authorize bidding up to $20 million for some of the leases.” In Ohio, JobsOhio is “a state-owned economic development corporation”. In Licking County it would be Grow Licking County. And in Licking County’s seat of government, Newark, it would be Newark Development Partners. You can throw the Port Authority in there too as it likewise is an “economic development corporation” and covers a multitude of “governments.” The gist of Fountain’s article, you ask? “But if the development authority proceeds, it sets up the possibility that when the sealed bids are opened on Jan. 6, the state may find itself the sole owner of leases.” “He [Frank Murkowski, Lisa’s dad] also pointed out that because leasing revenue is split equally between the federal and state governments, if its bids were successful the state would be getting a unique deal. “You’re going to get half your money back,” he told the authority’s board. Only the state, he added, “can buy at a 50% discount.”” “In the [2017] tax bill, the sales were presented as a way to raise $900 million over 10 years for the federal treasury to help offset more than $1 trillion in tax cuts. But that figure has long been questioned by outside experts. An analysis last year by The New York Times suggested the actual amount would be about $45 million.” “The group [Taxpayers for Common Sense] said its most recent estimate showed that the federal treasury could receive as little as $15 million from the lease sales.” Where’s the market in all this? Indeed, where’s the market in the various tax abatements, credits and infrastructure enhancements offered by JobsOhio, Grow Licking County and the Port Authority in their offerings to secure corporate “investment” in Etna, Pataskala and the Rt 79 corridor? It certainly is about “Who’s going to get what piece of land to cultivate”. And what about Newark Development Partners purchase  and projected multi-million dollar “development” of the Newark Arcade being totally contingent on receiving government funded “historic tax credits” while the low barrier shelter “projected” by these same folks goes nowhere? “A market is a way for people to distribute resources and goods. That’s all it is.” Free and equitable, it’s not.