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Another myth busted...

By: oldCADuser in FFFT | Recommend this post (0)
Mon, 19 Dec 11 8:20 AM | 50 view(s)
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Why Free-market Economics Is a Fraud

by Ian Fletcher

12/18/11

If there's one thing everyone in America knows, it's that free-market economics is true and free markets are best.

After all, we're not Communists, are we? They starved and lost the Cold War because they believed otherwise. And their watered-down European cousins, the socialists? More of the same, only less so. Even liberals get this nowadays. All hail the free market!

Trouble is, things "everyone" knows are often wrong. And this is no exception.

It's time to start getting honest about a very simple fact: Nobody, but nobody, really believes in free markets. That's right. Not the Republican Party, not the libertarians, not the Wall Street Journal, nobody.

Here's why: a truly free market is a perfectly competitive market. Which means that whatever you have to sell in that market, so does your competition. Which means price war. Which means your price gets driven down. Which means little or no profit for you.

Oops!

Naturally, businesses flee perfectly competitive markets like the plague. In fact, the fine art of doing so is a big part of what they teach in business schools...

For the full article, go to:

http://www.huffingtonpost.com/ian-fletcher/free-market-economics-critique_b_1155820.html?ref=politics

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