The “free market” is a myth. A “free market” is defined as a market with few if any barriers to entry and exit (a barrier to exit immediately becomes a barrier to entry!) with prices and products determined by demand.
In every “market” the large players erect every conceivable barrier to entry/exit as quickly as possible – a “free market” is one NOT dominated by few large entities whose pricing/profit objectives determine price and product levels irregardless of the demand in the product markets serviced. The few large entities prices will all move in lock-step to extract as much profit as possible from each consumer AND ELIMINATE COMPETITION BETWEEN THEMSELVES. Consolidation is far better than competition for extracting maximum profits.
To expect so called “free markets” to set correct prices or levels for anything is currently a very dicey proposition (do ya feel lucky sucker?) and if they are to be used for this purpose they must be highly regulated and effectively monitored to promote and sustain real competition in deed as well as word.
Markets, as they currently exist, have only one value- dollars. Dollars measure everything that business does. Human and social values (morality) can never be measured or expressed in terms of dollars – therefore they can never be introduced into the equations that business uses to determine action.
Morality has three positions:
Moral, which means you know what it is and you do it
Immoral, which means you know what it is and you don’t do it. And.
Amoral, which means you never take morality into consideration in the first place!
There can be no better definition of amorality than someone for whom dollars are the only and determining value considered before decision/action.
Markets, corporations and most businesses only consider dollars before decision/action and therefore are AMORAL. This is true regardless of the personal religious piety of the players. Personal “feelings” have no place in business decisions only dollars count.
Therefore all “markets” are not free but manipulated for a small number of large businesses and, markets are amoral and have no, zero, ability to consider, respond to or act in response to a single human or social value – unless playing to that human/social value happens to be profitable in terms of dollars.
Markets are neither free nor moral. I think we would be kidding ourselves to leave socially or humanly impacting business activities strictly to any unregulated and unmonitored “market” much less a mythical “free market”.
Free markets – or competitive markets – are defined as markets for which there are few or no barriers to entry or exit and which comprise many competitors. The first strategy and objective of business is to completely reduce or eliminate competition by erecting artificial barriers to competition like high costs to enter and exit.
Business wants to drive government into extreme debt so it doesn’t have the skills or the budget to force amoral business to act morally and ethically.Business wants the electorate to hate government and not participate in the political process. This “blinds and binds” the referee (the electors) – the first objective and strategy of all cheaters!!
Thanks for your reply. I’d like to respond in detail but cannot right now. I do note that you failed to answer my critiques of your “correct price” idea. Who sets the correct price? What _is_ the correct price? You only explained that the market price is wrong because amoral companies and wealthy elites do not take into account ecological and other social costs.
Yesterday, I watched the live stream video of your talk with the members of OMWSPD in Dallas on June 24 and just wanted to say that was the best presentation of an explanation of most of the essentials of MMT which I have come across which could be of assistance to the non-economist. If the initial 17 minutes were deleted and the rest edited and polished a bit, it might be a bit more complete/coherent.
Though yesterday’s link at Mike Normans site is not directly to your video: