Free Market

[Audie]

In a modern interdependent society such as our own, and such as in every modern nation on the planet, the only free markets left are the luxury markets. Because they are the only markets in which the buyer can still refuse to buy. So when you hear politicians and economists and whomever else talking about the glories of the "free market economy" they are blowing smoke up your arse. Because none of us is living in anything resembling a free market economy, anymore. We are all living in a captive market economy. And in a captive market system the priorities governing it are very different from that of a free market system.

This would probably go over your head, but if you
do read it you might come away with a broader
and more nuanced understanding of free market
capitalism.
Review: World on Fire by Amy Chua

 

[Jollybear]

I believe your misusing the word "free"

You’re paralleling by that of its English synonym, liberty.

In economic terms it’s A "market" that is a physical or metaphysical space legally defined and policed by government, in which individuals and organisations exchange goods and services through the use of debt, barter, and currency. I’m other words, they can be as large in scale as an entire market-society or market world governed by many governments and private enterprises with many competing currencies and laws, or as small as a single family-household in which debts are rarely measured in currency and often forgiven.

Free does mean liberty.

Freedom of action. In the market context, its free to run business as one chooses.

Thats what free market means.

 

[Jollybear]

Consider political speech in Ameristan vs N Korea.
It's useful to see the former as free, but the latter as oppressed.

I still dont understand

 

[Prometheus85]

The idea of a "free market" rests on a false assumption. If corporations compete with each other, a free market works. But it is more profitable for them to cooperate. So they do. The only thing that prevents them from fleecing us all are anti trust legislations. (But they usually find a way around those.)

In a free market corporations are constantly competing with each-other. That creates price war, because whatever you have to sell they have to sell. Which means your price gets driven down. Which means little or no profit for you.

 

[Jollybear]

In a free market corporations are constantly competing with each-other. That creates price war, because whatever you have to sell they have to sell. Which means your price gets driven down. Which means little or no profit for you.

It would stop going down at some point. They compete not just by prices, but by location and service.

 

[PureX]

Do you believe the market SHOULD be free?

What I think is that the whole point of creating an economic system is to enable the people engaging in it to trade resources, with the goal of improving everyone's well-being. Such that any economic system that does not enable this goal would logically be considered "dysfunctional", and should therefor not be engaged by humans.

 

[Revoltingest]

I still dont understand

I don't know how else to explain it.

 

[Jollybear]

I don't know how else to explain it.

Ok, regulating emitions the same for all, how is that free?

 

[Prometheus85]

Free does mean liberty.

Freedom of action. In the market context, its free to run business as one chooses.

Thats what free market means.

This is incorrect. In a market economy, individuals and private companies play more of a central role than the government but the government still plays a role.

This means that the price of bananas may be influenced by certain government policies but is mainly driven by consumers and companies going about their business. So, when does the government get involved in a market economy? Let's imagine for a moment that the government played no role at all. What risky things might happen that would be really bad news for most people?

Your still continuing to misuse the word "free"

 

[Jollybear]

What I think is that the whole point of creating an economic system is to enable the people engaging in it to trade resources, with the goal of improving everyone's well-being. Such that any economic system that does not enable this goal would logically be considered "dysfunctional", and should therefor not be engaged by humans.

So does that mean, free market?

 

[Revoltingest]

Ok, regulating emitions the same for all, how is that free?

Companies are still free to compete on an equal footing,
making & selling their products.

Question....
If no markets are free, then would you say that they're
equally not free?

 

[Jollybear]

This is incorrect. In a market economy, individuals and private companies play more of a central role than the government but the government still plays a role.

This means that the price of bananas may be influenced by certain government policies but is mainly driven by consumers and companies going about their business. So, when does the government get involved in a market economy? Let's imagine for a moment that the government played no role at all. What risky things might happen that would be really bad news for most people?

Your still continuing to misuse the word "free"

No, in a FREE economy, government sets NO PRICES on bananas at all. Sorry pale!

 

[Prometheus85]

It would stop going down at some point. They compete not just by prices, but by location and service.

How would prices go down when companies are constantly competing with each-other in the same market system?

 

[Jollybear]

How would prices go down when companies are constantly competing with each-other in the same market system?

Theyed go down to compete. When that can no longer go down further, then they compete by location and greater service.

 

[Prometheus85]

No, in a FREE economy, government sets NO PRICES on bananas at all. Sorry pale!

I didn’t say Government sets prices. I said prices may be influenced by certain government policies but is mainly driven by consumers and companies going about their business.

Don’t be dishonest.

 

[Jollybear]

Companies are still free to compete on an equal footing,
making & selling their products.

Question....
If no markets are free, then would you say that they're
equally not free?

Ok, yes, i see what your saying. The regulation is FAIR footing. But, there still not free from the regulation that is fair for all.

 

[Prometheus85]

Theyed go down to compete. When that can no longer go down further, then they compete by location and greater service.

Again. They are competing with each-other in the same market system!

 

[Jollybear]

I didn’t say Government sets prices. I said prices may be influenced by certain government policies but is mainly driven by consumers and companies going about their business.

Don’t be dishonest.

How does government influence the price of bananas if the market is free? You be honest.

 

[Jollybear]

Again. They are competing with each-other in the same market system!

Yea, and your point?

 

[Revoltingest]

Ok, yes, i see what your saying. The regulation is FAIR footing. But, there still not free from the regulation that is fair for all.

This illustrates the problem in defining "free" as a total lack of regulation.
But the word isn't used that way in economics.

 

[Prometheus85]

How does government influence the price of bananas if the market is free? You be honest.

Smh