To clarify, the theory behind the free market is that the seven figure salary in finance represents a greater contribution to the net social good than a teacher

To clarify, the theory behind the free market is that the seven figure salary in finance represents a greater contribution to the net social good than a teacher. You personally might not agree with this, but you are completely misrepresenting economic theory when you say that proponents of the free market consider it to be a prisoners dilemma situation. On the contrary they argue for the free market precisely because they believe that in the free market, individual and social goals are aligned