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TarasBob | 2 years ago

It does if the government is not involved.

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seadan83|2 years ago

The most pure form of free-market is a black market. Without any government, the free market does not have a mechanism to prevent monopolies (AKA absolute winners). Further, many markets do not even exist without the government. EG: there is no Tesla without the department of Energy [1]. The housing market would be totally different without Freddie & Fannie Mae, the banking system would also be totally different without FDIC insurance.

Capitalism creates bubbles & winners (aka monopolies). Government has to be involved to keep an even playing field and to smooth out the bubbles. No industry in the US has had no government involvement. All industries are involved with government in some form - if only to enforce contract law, or for more physical matters like using public roads, buying electricity from government run electrical companies, benefitting regulation that requires phone providers to provide service, etc..

[1] https://www.energy.gov/lpo/tesla

thefaux|2 years ago

How exactly does the market work without the government enforcing contracts and property rights?

xyzzy4747|2 years ago

Lots of cryptography and security guards?