In an age where economic disparity has reached levels reminiscent of the Gilded Age, the teachings of Adam Smith offer critical insights that progressives must reclaim. Far from the caricature of a heartless capitalist, Smith's writings reveal a nuanced understanding of market dynamics and the dangers posed by monopolistic practices. His warnings against oligarchy are more relevant than ever as we grapple with the consequences of unregulated capitalism.
Understanding Smith's True Legacy
Many on the left misunderstand Adam Smith, viewing him as a proponent of unfettered capitalism that exploits the working class. However, according to Stanford Encyclopedia of Philosophy, Smith's foundational work, The Theory of Moral Sentiments, emphasizes morality and societal welfare. He argued that the market should serve the common good, a principle many modern capitalists conveniently overlook.
The Peril of Monopolistic Practices
Smith's critique of monopolies is stark and unambiguous. He contended that monopolistic entities stifle competition and innovation, ultimately harming consumers and the economy. This is echoed in the analysis by David C. Korten, who notes that monopolies undermine the very fabric of a free market by limiting choices and raising prices. The increasing consolidation of wealth and power in the hands of a few corporate giants serves as a contemporary manifestation of the threats Smith warned against.
Elizabeth Warren running for 3rd US Senate term in 2024 | AP News
Progressive Movements Must Revive Anti-Monopoly Sentiments
The Progressive Movement of the early 20th century understood the importance of dismantling monopolies. Anti-trust laws were established to combat the monopolistic structures that threatened fair competition. Today, we face a similar challenge as wealth inequality soars, with the richest 1% holding more wealth than the bottom 90% combined. Research shows that extreme wealth concentration not only destabilizes economies but also erodes democratic institutions. As progressives, we must advocate for policies that not only challenge the status quo but actively dismantle the monopolistic practices that relegate our democracy to a mere facade.
The Role of Government in Protecting Competition
Contrary to the narrative pushed by neoliberal ideologues, government intervention is not the enemy of capitalism but its essential ally. Smith himself recognized that regulation is necessary to ensure a level playing field. The misconception that government is the primary hindrance to economic freedom ignores the reality that without regulatory frameworks, oligarchs will exploit their power to suppress competition. This is a clear reflection of Smith’s assertion that "whenever the legislature attempts to regulate the differences between masters and their workmen, its counsellors are always the masters.”
Occupy Wall Street Inspires Worldwide Protests : NPR
Reclaiming the Narrative Around Competition
Progressives must reclaim the narrative around competition and capitalism. We should not shy away from celebrating the positive aspects of a competitive marketplace while simultaneously condemning the monopolistic practices that distort it. According to Panmure House, Smith viewed competition as a catalyst for creativity and innovation. The goal should be to foster an environment where small businesses can thrive, creating a dynamic economy that benefits all.
By aligning our economic policies with the principles Smith championed, we can create a more equitable society. This involves pushing back against the oligarchs and their political allies who seek to perpetuate systems of inequality. It demands a collective effort to restore competition and fairness in the marketplace.
