MARKET FUNDAMENTALISM Meaning and
Definition
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Market fundamentalism is an ideological perspective that advocates for an unrestrained, self-regulating market as the most efficient and effective mechanism for organizing economic and social systems. It is characterized by an unwavering belief in the supremacy of free markets and minimal government intervention in the economy. Proponents of market fundamentalism argue that market forces, driven by the pursuit of individual self-interest and competition, will lead to optimal outcomes, such as economic growth, increased efficiency, and overall societal well-being.
Market fundamentalists argue that interventions by the state, such as regulations, taxes, and social welfare programs, distort market mechanisms and hinder economic progress. They view government intervention as inefficient, prone to corruption, and prone to unintended consequences. They advocate for the removal of barriers to trade and the elimination of regulations, labor protections, and social safety nets. They believe that the market should be left to its own devices, as it can efficiently allocate resources, determine prices, and coordinate the actions of millions of individuals pursuing their own self-interest.
Critics of market fundamentalism argue that it disregards the potential negative impacts of market forces, such as income inequality, market failures, and externalities. They highlight the need for government intervention to correct market failures, protect vulnerable individuals and communities, and ensure a fair distribution of resources. Detractors point out that unchecked market forces can lead to monopolies, environmental degradation, exploitative labor practices, and a lack of social cohesion. The term "market fundamentalism" is often used pejoratively to critique a rigid and dogmatic adherence to free-market principles without considering broader social and ethical implications.
Etymology of MARKET FUNDAMENTALISM
The term "market fundamentalism" first emerged in the late 20th century to describe a particular economic ideology that emphasizes the primacy and infallibility of the free market. It was coined as a pejorative label by critics of this ideology who sought to highlight what they perceived as an almost religious-like belief in the market's ability to solve all economic and social problems.
The word "fundamentalism" itself originates from religious contexts, specifically referring to a strict adherence to the fundamental or foundational beliefs of a religious tradition. The term gained prominence in the 20th century, particularly in relation to various movements within Christianity that sought to return to or preserve the core tenets of their faith.
When applied to economics, "market fundamentalism" implies a similar level of unwavering faith in the power and efficacy of the market.
