Towards a market structure that serves the greater good

‘This crisis lays bare the myth of the invincibility of the market. Market has broken down in a big way and the state is asked to step in to solve this crisis – from bail out of companies, to paying wages of workers, to cutting interest rates, soft and loans to small business guaranteed by the state etc.

‘Markets will continue to exist and play a part in the economy. But it must be subordinated to society, to be regulated by the state to serve a greater good. For market to function well as a public good, it must not only be free but also fair. Both attributes are equally important, like the two wings of birds. The new economy must prioritise people’s as well as nature’s wellbeing over profit making for a few.’

Read here (IPS News, April 6, 2020)

Three lessons from this pandemic by Dr Lim Mah Hui & Dr Michael Heng

‘There are three lessons to draw from this crisis.

‘First, the pandemic exposes the flaws of neoliberalism which deifies the free market and vilifies the state... Under this scenario, risks are socialised while profits are privatised. It weakens the capacity and readiness of society to respond to unanticipated nation-wide crisis.

‘Second, had the rich western countries cast off their ideological blinkers and used the opportunities after the GFC to invest in infrastructure, research and development, public goods, reduction of huge inequalities and other form of capital development, the whole world would have been in better conditions to deal with the unfolding situation.

‘Third, the crisis underscores the interdependence resulting from systematic integration over the past several decades. It is a cliché now to say that pathogen respects no border. It took only a few weeks for the virus to travel worldwide. A global solidarity is needed to tackle problem of this nature which unfortunately is not being displayed...

‘The world has to act in a concerted action. We are all in the same boat; a leak in one part will sink the boat no matter where the source.’

Read here (IPS News, April 1, 2020)

Questions on the government stimulus package

‘The way the government has crafted the package raises a host of questions. Does it help those in greatest need? Is it the most effective way to help the needy and keep the economy intact? Is the principle of sharing pain, i.e. the well to do should do their part to sacrifice a bit of their income for the needy, adhered to? Are some groups getting more at the expense of others?’

Read here (FreeMalaysiaToday, April 1, 2020)