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You're redefining what a 'free market' means. If one side has a greater need or desire, that is still within the bounds of what a free market is. The market cre
by throwawaysea 6y ago
You're redefining what a 'free market' means. If one side has a greater need or desire, that is still within the bounds of what a free market is. The market creates incentives and disincentives to fulfill different market demands, by creating an incentive to supply what's in demand (by paying more) and a disincentive to supply what we don't need more of (by paying less).
- gjulianm 6y agoNot a greater need or desire, but a fundamental need. It's an important distinction. In a perfect market, if the only offers to buy a product are too low, you will stop production and close the company because you can't make a profit. In the labor market, if the salaries are too low, people will still take the jobs because low income is better than zero income.