[asift]

I think you're being too narrow in your conception of what markets do. I'm not denying the existence of snake oil salesman--they absolutely do exist--but there are many ways markets combat such behavior. I suspect much of this gets crowded out by the existing regulatory regime, but it's not hard to envision how it would work outside of the status quo (with substantially less cost to consumers).

Underwriters' Laboratories, Consumer Reports, Amazon Reviews, and Yelp are all good examples of effective, though imperfect, market regulation. Producers have no interest in harming their consumers and consumers have no interest in dealing with producers who will harm them. Everyone has an incentive to find ways to ensure mutually beneficial trade. However, when regulatory regimes are monopolized, a new set of incentives emerge which often have nothing to do with consumer safety. Worst of all, consumers and producers have no means to express their dissatisfaction and exit the regime. This is inherently different from companies like Yelp who must fight on a daily basis to continue delivering value to their customers.

[zanny]

Except the whole point of my argument is that while I personally believe in the ethical capacity of fully free markets to work, it requires all participants be informed, intelligent, and educated on how markets work, and they must be rational.

Go walk down the main street of any town in the US and realize how few people are actually educated, or rational, or functional. It is absolutely a product of both culture and the state as it exists that most normal people are raised to become these... zombies? But they are not going to use rational means to pursue products, which is why we have this nanny state consumer production giant looming over everything.

But like I said, we cannot just dissolve those overabundant regulations and growth stifling control with people as stupid as they are. That is just a recipe for pandemic exploitation to degrees even greater than what our current advertising industry pumps out. Just look at how often you hear a story of someone or their kid spending a months worth of wages on some shitty Android game because they were raised to be completely oblivious to obvious swindling.

If we could raise a generation and/or a nation of smart, rational, informed consumers, we could easily replace all the certification and licensing that slows innovation to a crawl with self regulation. Until then we are stuck in a world where people buy self-help books, booze, and Viagra instead of paying off their credit cards.

[jrochkind1]

> Producers have no interest in harming their consumers

If you mean by 'interest' what I think you do, they have an interest only in making money. They have no more interest in NOT harming their consumers than they do in harming their consumers -- and producers of inherently harmful products (cigarettes being the obvious incontestable example) in fact do have an interest in harming their users. But there are PLENTY of producers who have demonstrated an enthusiasm to harming their users, if it sells product.