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Capitalism works due to the "free market" which maps a large number of producers to a large number of consumers in an efficient way. When the market ceases to b
by nine_k 9mo ago
Capitalism works due to the "free market" which maps a large number of producers to a large number of consumers in an efficient way. When the market ceases to be sufficiently free, capitalism starts to falter. It may be regulation, it may be monopoly, it may be monopsony, it may be dysfunction of the judiciary system that fails to protect property rights, etc.
A system of only two parties trading the entire economic output of a country would be utterly un-capitalist, more like two kings trading in products of their kingdoms. No doubt that any social institutes would have been subjugated by these two parties.
- Terr_ 9mo ago> an efficient way. When the market ceases to be sufficiently free I want to highlight that the freedom of the efficient market is not the same as the freedom of participants, and that in certain specific ways they are inherently opposed. Contrast these two kinds of promotion: 1. "Our X system is the most efficient and our best chance for abundance, we proved it with math! ... Because "correct" prices are discovered through public prices where all transactions are open market transactions with public prices. I 2. "Our X system is the free-est because nobody's telling you what to do with your stuff! Economic liberty! ... Because two consenting parties can make all sort of private deals with secret or preferential prices and and non-disclosure agreements. I feel there are certain blocs--sometimes certain individuals--that act as if both are equally and simultaneously true, despite the inherent contradiction.