It takes a lot of rules to make a market free.

/It takes a lot of rules to make a market free.

In reality, the ‘free market’ is a bunch of rules about 1) what can be owned and traded (the genome? slaves? nuclear materials? babies? votes?); 2) on what terms (equal access to the Internet? the right to organize unions? corporate monopolies? the length of patent protections?); 3) under what conditions (poisonous drugs? unsafe foods? deceptive Ponzi schemes? uninsured derivatives? dangerous workplaces?); 4) what’s private and what’s public (police? roads? clean air and clean water? healthcare? good schools? parks and playgrounds?); 5) how to pay for what (taxes, user fees, individual pricing?). And so on. These rules don’t exist in nature; they are human creations. Governments don’t ‘intrude’ on free markets; governments organize and maintain them. Markets aren’t ‘free’ of rules; the rules define them.

–Robert Reich.

2015-04-10T08:07:42+00:0025th January, 2014|Tags: culture, economics, politics|Comments Off on It takes a lot of rules to make a market free.