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Free Market

Prometheus85

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

Let's take a look at a hypothetical business, the Yellow Fruit Company, which grows and distributes bananas. We'll call its competitor the Curved Fruit Company. Imagine that the Yellow Fruit Company has found a way to grow bananas more quickly and efficiently but also increases the effects of pollution. To compete with the Yellow Fruit Company, the Curved Fruit Company has to use the same new process, which leads to an increase in pollution. If left to the market alone, these two companies would double the number of additional pollutants to the environment. While the new method is a more economically efficient way to grow bananas, nature and people will suffer. At this point, the government plays a role in the market economy by setting rules about environmental pollution. That way, the Yellow Fruit Company and the Curved Fruit Company both have to abide by the rules while competing on equal terms.

This should be easy for u to understand
 
This illustrates the problem in defining "free" as a total lack of regulation.
But the word isn't used that way in economics.

So free means fairness?

Why should there be fairness if one company is stupid?

Why should there be fair regulation on emitions? In other words, why should there be regulation on emitions in the first place?
 

PureX

Veteran Member
So does that mean, free market?
Commerce is about trading. And the purpose of trading is to improve the well-being of the humans on both sides of the trade. If the trade only improves the well being of the humans on one side of it, it's no longer commerce, it's become exploitation.

We generally hold the idea that as long as the participants of a trade are "free" to refuse the trade, then they can protect themselves from being exploited. And that is generally true. But there are a lot of causes for one or more of the participants of a trade to be unable to refuse it. And that's when commerce breaks down and becomes exploitation.

In a modern interdependent society such as ours, we are not able to refuse a great many of the trades that we must routinely engage in, to survive. And so we are very vulnerable to exploitation. And we are, in fact, being exploited by our commercial system most of the time. It is NOT designed to serve our well being. It is designed to exploit our vulnerabilities, whenever possible, to the detriment of our well-being. And it is therefor a socially toxic system, and should not be engaged in by logical, rational humans. It is not a "free" market system because we cannot refuse to engage in it, to protect ourselves, and live.
 
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Let's take a look at a hypothetical business, the Yellow Fruit Company, which grows and distributes bananas. We'll call its competitor the Curved Fruit Company. Imagine that the Yellow Fruit Company has found a way to grow bananas more quickly and efficiently but also increases the effects of pollution. To compete with the Yellow Fruit Company, the Curved Fruit Company has to use the same new process, which leads to an increase in pollution. If left to the market alone, these two companies would double the number of additional pollutants to the environment. While the new method is a more economically efficient way to grow bananas, nature and people will suffer. At this point, the government plays a role in the market economy by setting rules about environmental pollution. That way, the Yellow Fruit Company and the Curved Fruit Company both have to abide by the rules while competing on equal terms.

This should be easy for u to understand

The free market will deal with the polution. Demand and supply. The people will want less polution or else they wont buy the bananas, the banana producers will be indirectly forced to adapt in order to keep making sales.
 

Prometheus85

Active Member
The free market will deal with the polution. Semand and supply. The people will want less polution or else they wont buy the bananas, the banana producers will be indirectly forced to adapt in order to keep making sales.

You dramatically missed the point.

The free market is causing the pollution because the companies are constantly competing with each other
 

Revoltingest

Pragmatic Libertarian
Premium Member
So free means fairness?
It's never a good idea to distill the definition of one word into another.
Why should there be fairness if one company is stupid?
Why change it from "free" to "fair"?
Why should there be fair regulation on emitions? In other words, why should there be regulation on emitions in the first place?
Your right to burn your gas ends at your neighbor's nose.
 
Commerce is about trading. And the purpose of trading is to improve the well-being of the humans on both sides of the trade. If the trade only improves the well being of the humans on one side of it, it's no longer commerce, it's become exploitation.

We generally hold the idea that as long as the participants of a trade are "free" to refuse the trade, then they can protect themselves from being exploited. And that is generally true. But there are a lot of causes for one or more of the participants of a trade to be unable to refuse it. And that's when exploitation occurs.

In a modern interdependent society such as ours, we are not able to refuse a great many of the trades that we must routinely engage in, to survive. And so we are very vulnerable to exploitation. And we are, in fact, being exploited by our commercial system most of the time. It is NOT designed to serve our well being. It is designed to exploit our vulnerabilities, whenever possible, to the detriment of our well-being. And it is therefor a socially toxic system, and should not be engaged in by logical, rational humans. It is not a "free" market system because we cannot refuse to engage in it, to protect ourselves, and live.


In a truly free market would this exploitation happen do you think?
 

Prometheus85

Active Member
In a truly free market would this exploitation happen do you think?

Yes.

A market economy with no government intervention also has the potential to trample on some of the rights that you apparently take for granted or just don’t know anything about. For instance, have you ever seen the price of gas suddenly shoot up sky-high during a natural disaster? At times like these, certain businesses take advantage of an emergency situation by price gouging, or Inflating the price of a needed good to turn a profit.
 
Yes.

A market economy with no government intervention also has the potential to trample on some of the rights that you apparently take for granted or just don’t know anything about. For instance, have you ever seen the price of gas suddenly shoot up sky-high during a natural disaster? At times like these, certain businesses take advantage of an emergency situation by price gouging, or Inflating the price of a needed good to turn a profit.

Or they dont want to run out of supply too fast.
 

PureX

Veteran Member
In a truly free market would this exploitation happen do you think?
A "truly free" market is a luxury market, in which the participants can refuse the trade to protect themselves from exploitation, and still maintain their well-being. This forces the traders to seek improved well-being on BOTH sides of the exchange, to gain participation in their commerce.

Once human beings abandoned self-sufficiency for the efficiency of specialization, and trading became a necessity of their survival (not just a luxury), "truly free" trading mostly vanished. And we need to face this reality, and stop spewing all this nonsense about "free trade" and how it will miraculously end exploitation if it is allowed to be conducted without laws. That is patently untrue, and patently insane. Modern commerce is NOT FREE except for the relatively small luxury products and services market.
 

Prometheus85

Active Member
No i didnt, i answered your point with my own.

Yeah you did miss. Because A market economy with no government intervention means companies can do whatever they wanna do. Even it means Polluting the environment or violating peoples rights. But hey, it’s all about "freedom" right?
 

Shadow Wolf

Certified People sTabber & Business Owner
Once human beings abandoned self-sufficiency
We have never been self sufficient. Social animals don't really evolve to be that way. Solitary animals do, but social critters evolve to benefit and flourish in their group.
 
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