The Myth Of Free Markets – Blog Post 0018

Markets are made up of companies which are made up of individuals and their respective choices. For a market system to be truly free, individuals have to be truly free since individuals are the smallest functional units of markets. However, individuals cannot be truly free because to be truly free would enable individuals to commit harmful acts against other individuals without consequence. Social authorities have long ago figured out that some restrictions need to be placed on the actions of individuals for the good of society as a whole. Different tribes, municipalities and nation states have experimented with different degrees to which individual actions were limited. Some governments restrict religious practice and belief. Others restrict free speech and freedom of assembly. But almost all societies have decided that killing other members of an in-group is detrimental under most conditions and punish such actions. Because these regulations are applied to all individuals, markets, which are ultimately made up of individuals and their choices, cannot be truly free. Otherwise business owners would be allowed to kill or intimidate their competitors out of existence. So the idea of a free market system, a system devoid of any regulations, is a theoretical one. If such a system were allowed to exist, it would destabilize and ultimately crash the economy and the society as a whole. So when speaking of regulations as applied to individuals, businesses and markets, we speak of degrees of regulation and not whether there should be regulation. Because regulation is built into the system and cannot be extricated.

I am experimenting with shorter form blogs. I figured that in our current distracted, ADHD world, it would be easier to digest certain concepts if they are presented in a concise manner. I would love to get your feedback and thanks for reading.

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