What Happened to the GOP's Free-Market Principles? | David Boaz | Cato Institute: Commentary

What Happened to the GOP's Free-Market Principles? | David Boaz | Cato Institute: Commentary: 'In a growing economy, companies succeed and fail every day. Technology changes. Consumer tastes change. New competitors offer a better product or a better price. Raw materials or labor becomes too expensive. Some companies just aren’t viable, and some investments turn out to have been mistaken.

That’s what the “creative destruction” of a market economy is all about. Companies constantly seek to serve consumers better. And often one company’s success means that other companies fail. Manufacturers of obsolete products often go out of business. Jobs and investments are lost, but what’s the alternative? Should we be keeping the firms that once made horse-drawn buggies, gramophones, and slide rules in business? No, we understand that the process of economic change makes us all better off, even though there can be short-term pain for the owners and employees of failed firms.

Republicans are supposed to know all this. That’s why they proclaim their devotion to free markets and oppose industrial policy, government subsidies, bailouts, and other schemes to override the market process and keep current firms in business even when they’re no longer meeting consumers’ needs.'

'We’d never get new companies like Staples, Domino’s, Bright Horizons, and Sports Authority — companies that Romney helped fund and nurture at Bain Capital — if investment capital was locked into existing companies.

And sometimes, as the movie “Other People’s Money” demonstrated, it takes a “predatory corporate raider” to go in and shake up a company, moving the land, labor, and capital to places where they can be more productive.'