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

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  •  The biggest problem for a pure libertarian economy (2+ / 0-)
    Recommended by:
    Deward Hastings, RockyMtnLib

    is that it is inherently unstable.

    Among the competitors some by a combination of skill and luck will be more successful.  Once some business becomes bigger it becomes more powerful.  It will use its power to restrict competition.  Oligopoly and monopoly have higher profit margins.  Eventually a few powerful businesses will wield power equal to a government, but with no accountability.  The result is oligarchy.  Anybody who thinks that successful businesses will not use their power to restrict competition if they can is believing in a fantasy.

    Of course there could be some outside force that uses its power to prevent such an outcome.  The name for such an outside power is government, which is exactly what the libertarians say they want to eliminate.

    You can't eliminate power.  But we can and must work to make power accountable.  The libertarian model does not.

    "The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt." Bertrand Russell

    by Thutmose V on Sat Feb 16, 2013 at 11:12:44 AM PST

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