Free Market is Good. However, it Shouldn’t be a Mantra

Free access to scriptures religious leaders try to censor

Most libertarians have a point. The free market is good. The private sector is good. The public sector is usually bad.
This has 2 flaws. It’s not very deep. Yes. It’s true. But why is it true? Even if it’s good, how to achieve that? Good for who? Quite often, libertarianism are not good for those who make the decissions, namely voters.
Also libertarianism sucks when it comes to securing protection. Countries like Israel and Lebanon cannot be libertarian.
On the other hand, democracy is not awesome either. So why  not get the best of both world. Something like capitalistic democracy. Just turn voters into owners. Then see if the country become more or less libertarian?
Saying that free market is great is like mantra or formula. It’s like knowing Pythagoras theorem without knowing the derivation. Pythagoras theorem is true but you also need to know how to derive that.
Why is the free market good? Because it brings prosperity and fairness automatically or almost semi automatically. Under free market every individuals’ interests are properly aligned to productivity as a whole. The price of your service is the marginal utility of such service for the society.
In fact, nations that behave like private companies tend to perform better. When nations have to compete with one another, for example, they lower corporate tax.
To the opposite, when a private company does not have competition, they will be quite problematic.
Can we learn and implement the same thing in the public sector? I think to a lot of extend we can. Just look at Uber.
Free market individualized karma. If someone sells a bad product, not everyone has to buy it. This provides an incentive for buyers to be careful and correct. In case the customer is already alert and yet things still go wrong, such as in case of fraud, the government gets involved.
In democracy, the link is not that strong. A politician can lie to 51% of the population and still get elected. The voters themselves do not have the incentive to be correct.
Free market properly aligns people’s interests in productivity. We don’t have that in democracy. If your country is so good, a lot of people will come to your place and become voters too. Many voters do not want their country to be attractive to immigrants.
Many voters want a land price to go down. Voters that govern their area well will have the land price going up. However, most voters are not land owners, and that means their rent went up. So they don’t like too much road or security.
In the free market, all shareholders interests are properly aligned. We vote well because there is no conflict of interest.
In a democracy, people vote against another voters. The interests diverge.
Libertarians have two weaknesses. It doesn’t profit those who are in power. It doesn’t even care. Libertarians are too far aligned from interests of those who are in control.
Many welfare parasites will starve if their country is libertarian. Also, governments are more similar to defense pact than corporations.
If libertarians can take care of that, they can make their region far more libertarian. Sacrifice some principles to get more on the other area.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.