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I used to be Libertarian, too, until I realized one very important thing: a pure market approach does not take into account exploitation. It assumes that expl
by clavalle 11y ago
I used to be Libertarian, too, until I realized one very important thing: a pure market approach does not take into account exploitation.
It assumes that exploitation can be handled within the same system that spawned it -- the market -- and it simply can't.
Much of the underlying mathematics of modern market theory assume that expectations on transactions are positive. Markets only move toward efficiency under that assumption. That is why things like muggings, an exploitative transaction, can never lead to market efficiency.
Exploitation is where this assumption, and therefore the free market, breaks down. If a person might die if they don't make a deal that is clearly exploitation.
In this case the guy is taking advantage of government constructed barriers to entry but, at its heart, that plan can only be successful because there is an exploitative element to the original transaction. If this guy was selling interesting pencils, for example, such a plan would never pan out.
We need some sort of extra-market intervention in the case of potentially exploitative transactions. That is the litmus test and just the fumes from this company set it off.