That’s part of the issue with free markets. There’s a missing part to the term that most people drop for some reason, and that would be ‘competition’. Competition doesn’t last very long before there are winners and losers. When it comes to the economy, that means the winner is the largest company and the losers are the companies that were bought or shut down. The end game of free market competition is monopoly. The only reason the competition doesn’t end is because of government regulation to facilitate and uphold capitalist free markets.
The only reason the competition doesn’t end is because of government regulation to facilitate and uphold capitalist free markets.
A.K.A. what Adam Smith was really talking about when he mentioned the “invisible hand” (contrary to what the laissez-faire cargo-cultists think).
what Adam Smith was really talking about when he mentioned the “invisible hand”
today, I got a clarified/alternate point of view. today was a good day. thank you, internet friend.
explore_broaden@midwest.social 3 months ago
Yeah this is exactly what free market lunatics on the right don’t understand. Monopoly isn’t a free market. Free markets simply cannot exist without regulation to prevent unfair business practices.
Also any reasonable economist can tell you that the free market does not solve issues like the tragedy of the commons, because negative externalities are not factored in. It is also the government’s job to ‘internalize’ externalities so companies actually see the costs of, for example, polluting our air and water.
rockSlayer@lemmy.world 3 months ago
I respect your reasoning, though I disagree about free markets being better than a democratically managed economy. I think free markets are inherently oppositional to a cooperative society, and that the myth of the commons was invented as a justification for capitalism.