The breakout of ‘free market’ hysteria

Summary

Dr Joe Zammit-Lucia argues that the idea of a pure ‘free market’ is a fantasy: markets are political constructs governed by law and shaped by policy. He responds to recent outrage over US government interventions — equity stakes in Intel and investments in critical minerals — by pointing out widespread historical and ongoing state involvement in business (bailouts, grants, tariffs, subsidies and industrial strategy).

The piece says critics are hypocritical when they condemn government stakes but applaud public support when it benefits their sectors. It calls for democratic countries to design a distinct, non-authoritarian model of political capitalism that can mobilise both public and private resources to compete with China’s state-directed approach. Finally, it urges industry leaders to adopt a greater sense of public purpose and to collaborate with government on long-term industrial ecosystems.

Key Points

There is no truly ‘free market’ — markets rely on laws, regulations and public trust.
Recent US government equity stakes (e.g. Intel) have re-ignited free-market hysteria, but selective outrage ignores past and present state support for business.
Government interventions serve public-interest goals, often aiming for long-term, diffuse social and economic returns that private investors avoid.
Western democracies face a strategic choice: learn to marshal industry-government ecosystems without adopting authoritarian Chinese methods.
Successful industrial policy requires willing, collaborative industry partners and a shift from short-term financialised priorities to longer-term national missions.
Boardrooms should revisit the idea of public duty and consider how businesses can contribute beyond immediate shareholder returns.

Context and relevance

The article sits at the intersection of economics, geopolitics and industrial strategy. It is relevant to executives, policymakers and investors because it reframes government intervention not as an aberration but as an intrinsic feature of modern markets — and highlights the strategic imperative of building industry-government partnerships to compete with state-directed models abroad.

Author style

Punchy. Dr Zammit-Lucia writes with a clear, opinionated tone that pushes readers to rethink simplistic ‘free market’ narratives and to weigh national strategic interests alongside shareholder concerns. If you care about industrial policy or geopolitical competition, this sharp take is worth your attention.

Why should I read this?

Because it guts the myth that markets operate in a political vacuum and explains, in plain language, why governments and businesses must stop pretending they don’t already work together. Short, direct and useful if you want a quick reality check on the politics behind recent headline-making interventions.

Source

Source: https://ceoworld.biz/2025/09/15/the-breakout-of-free-market-hysteria/

The breakout of ‘free market’ hysteria