Amit's Blog

The Free Market Myth: Power, Politics, and Protectionism     Free market economics, envisioned as a system of unfettered trade, minimal government interference, perfect competition, and unrestricted factor mobility, remains a theoretical construct rather than a practical reality. Geopolitical imperatives—state power, security, and strategic interests—consistently override market principles, as evidenced by historical mercantilism, Cold War trade blocs, and modern sanctions. Social and political pressures in affluent nations restrict labor mobility, thwarting a free labor market, while technology protectionism, driven by national security concerns, fragments global innovation. The World Trade Organization (WTO), often misrepresented as a beacon of free trade, is a pragmatic compromise, managing trade tensions through rules that permit tariffs, subsidies, and exemptions. Additional barriers—market failures, corporate monopolies, inequality, cultural norms, and financial controls...

Geopolitics: The Hidden Hand That Stacks the Economic Deck Geopolitics ruthlessly distorts the global economic canvas, favoring powerful nations like the U.S. and EU while constraining the Global South, former colonies, and non-aligned energy producers. Colonial legacies lock in extractive economies, with nations like the DRC losing wealth to foreign firms. The dollar’s dominance, enforced by sanctions and debt traps, chokes non-aligned states, as seen in Iran’s GDP plummeting 10% post-SWIFT ban. Technological monopolies in AI and semiconductors widen the innovation gap, with Africa’s 29% internet penetration trailing the North’s 90%. Environmental burdens fall on the South, with Nigeria’s oil wealth enriching Western firms while 50% of its people live in poverty. Military might, via U.S. bases and proxy wars, secures economic control, while cultural hegemony—through Hollywood and English—marginalizes local models. Global governance, skewed by IMF voting and WTO rules, favors the pow...