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Capitalism doesn't just happen. The natural state of nature is cartels, that's what markets will trend towards without government regulation. If this effect is
by CPLX 4y ago
Capitalism doesn't just happen. The natural state of nature is cartels, that's what markets will trend towards without government regulation.
If this effect isn't intuitive to you, consider what happens when the market for something is completely removed from government involvement, like the global market for cocaine. Or a market that develops in the absence of any kind of centralized authority, like Somalia.
That's what happens to every market unless a state intervenes. The invisible hand of the market trends towards long term warlord/mafia type arrangements unless the public is organized enough to stop it.
- JackFr 4y ago> like the global market for cocaine. The global market for cocaine is highly regulated by very violent men with guns. It is for that reason that drug consumers favor legalization but drug suppliers oppose it.