Thursday, March 19, 2015

(Re-Post): Four Free-market Fallacies

Reminder:  Due to illness, I am forced to modify my posting schedule ending, hopefully, by June 1st. Consequently, I am reducing the number of posts to two per day and will be relying on audio, video, and re-posts to a much greater extent than normal during this period.  Thank you for understanding and for continuing to visit – and recommending! -- On Liberty Street! Now on to the post:

Original post 2/24/14: Writing at The Freeman, economist Sandy Ikeda discusses four common mis-perceptions about free-markets.  Here's a slice from point 1, the common belief that if government doesn't regulate markets, greedy corporations will harm us all in the pursuit of profit:
1. The Free Market Must Be Regulated
This one never seems to get old. I wish it would just die. In truth, I agree with it, but in a different sense than it’s usually meant...

Bottom line: In the absence of government regulation, there’s still regulation in the free market. It’s called competition. And if you want more safety and better quality, take away barriers to free competition.
Click here to read the rest of item 1 above and the other three free-market myths Ikeda debunks.  Also, there are links to two previous columns of Ikeda's on this same topic, so check them out as well!