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View Diary: What's wrong with free market economy (15 comments)

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  •  free market rests on impossible assumptions (3+ / 0-)
    Recommended by:
    Deward Hastings, a2nite, RockyMtnLib

    1. Human beings are not rational.  This alone demolishes the entire edifice of mainstream economics and political libertarianism.

    2. "Value" is subjective.  Even if you assume that human beings are "value maximizing", this says nothing about what those values are: free market types simply declare "value" to be wealth/income.  While some people hold making money as their ultimate value, most others do not.  Some people hold leisure as their ultimate value, and would prefer not to work 70 hours a week at some high-stress job in the pursuit of maximum income.

    3. Perfect information is impossible.  Everyone needs to be able to know everything there is to know about every product available for sale in order for them to make choices that best fulfill their needs and desires.

    4. Perfect freedom of choice is impossible.  Only very rich people have anything approaching perfect freedom of choice; poor people will buy what they can afford, even if it's crap.  To argue this is choice and that there is legitimate inherent demand for low-quality goods is absurd.

    Simply eliminating regulations on the behavior of economic actors is not enough.

    Something's wrong when the bad guys are the utopian ones.

    by Visceral on Sat Feb 16, 2013 at 10:42:13 AM PST

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