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Joined 2 years ago
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Cake day: June 12th, 2023

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  • The paper that coined the term free market specifically referred to them as “well regulated”. From the very beginning it was recognized that a functioning market requires government regulation, if for nothing else at least for contract enforcement and dispute resolution.

    Many free market evangelists would agree that some state is likely necessary, to, as you point out, enforce contracts and mediate dispute resolution, as well as enforce private property rights. However, whether they would admit it or not, they only want said state to work for them, but never against them. They want all the protections that a state might offer, but none of the restrictions. They want laws that protect them but never bind them.



  • Not enough people listen to Joseph Stiglitz. Even many economists don’t listen to Stiglitz. That’s the thing about economics: it’s more philosophy than science, and like philosophy there are different schools of thought. If an economist doesn’t like what Stiglitz has to say, that economist can just choose to listen to someone from a different school within economics.

    For instance, Stiglitz has been quite critical of what he calls “free market evangelism,” the popular idea that free markets are the most efficient method for distributing scarce resources, and so there should be minimal interference with markets from “outside” entities like the state. Economists like Stiglitz have pointed out that markets are not as efficient as the evangelists believe, but, obviously, they don’t listen.