Free Market Forces Should Regulate Our Economy
Free market means FREE FROM GOVERNMENT CONTROL. Excellent article!
“It is no matter of indifference whether State operatives or market forces do the regulating. Bureaucrats, who necessarily have limited knowledge and perverse incentives, regulate by threat of physical force. In contrast, market forces operate peacefully through millions of cooperating participants, each with intimate knowledge of her own personal circumstances and looking out for her own well-being. Bureaucratic regulation is likely to be irrelevant or (more likely) inimical to what people in the market care about. Not so regulation by market forces.
If this is correct, there can be no unregulated, or unfettered, markets. We use those terms in referring to markets that are unregulated or unfettered by government. As long as we know what we mean, the expressions are unobjectionable.
But not everyone knows what we mean. Someone unfamiliar with the natural regularities of free markets can find the idea of an unregulated economy terrifying. So it behooves market advocates to be capable of articulately explaining the concept of spontaneous market order—that is, order (to use Adam Ferguson’s felicitous phrase) that is the product of human action but not human design. This is counterintuitive, so it takes some patience to explain it.”
“What regulates the conduct of these people? Market forces. (I keep specifying “in a freed market” because in a State-regulated economy, competitive market forces are diminished or suppressed.) Economically speaking, people cannot do whatever they want–and get away with it–in a freed market because other people are free to counteract them and it’s in their interest to do so. That’s part of what we mean by market forces.”