Jeff,
The major flaw in the Capitalist ideology is that it assumes that a 'free' market is actually free. It never is and never was.
In the early 70's the UK formed a Monopolies and Mergers Commission specifically to ensure that power in the hands of large Corporations was regulated to ensure that the citizens interests were protected. Of course Thatcher largely undermined its power as her committment to a 'free economy' verged on the Messianic. It never recovered its status and was replaced in the early 90's by the relatively impotent Competition Commission.
What can happen when controls on corporations are deregulated is what is happening in the UK at present with its Gas prices. British Gas, which was 'privatized' under Thatcher, has announced a 35% increase in national Gas Prices. The day after announcing this increase it also announced that its six month operating profits were one billion pounds. The problem is that these profits were down 19% on last years, resulting in shareholder pressure. Even at this rate it has to be acknowledged that UK gas prices are certainly not the highest in Europe, but the 'fixing' that goes on within these corporations is for one reason alone. The problem is that those who suffer the greatest from these increases are not the shareholders, but the vunerable citizens.
The problem with oil for example is not about oil. As the head of Exon stated last year, "We are not in the oil business, we are in the money business and until people recognize this they will never understand the market". The CEO's brief is to make as much money as he can for his company. No person can blame him for this, as it is he is merely working within the Capitalist system and doing a bloody good job at making money at the moment.
Supply and demand is not a universal truth, but a manufactured one. Survival of the fittest however, is a universal and ugly truth. It eats the unfortunate, the poor and dispossesed for breakfast. It is the embarassing dimension of the American Dream.
HS
