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Free Market is a Perfect Market ?!?!?!

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Matthew posted on Thu, May 26 2011 12:24 PM

I've written another post for my blog and titled "What is a Free Market?"

One of the commenters has equated perfect markets with free markets. I'm not really sure how to reponds to this. Quoting him:

Theoretically, a free market should "theoretically" tend to be a perfect market.
A free market should be a market free of any insider or outsider influence.
A free market tends to deregulation or no regulations at all.

Of course the last sentence is nonsense as is the rest I'm sure, but what should I tell him?

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I'm not exactly sure that requires a response.  Was he implying a question somewhere?


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ricarpe replied on Thu, May 26 2011 12:34 PM

I would ask him to define both "perfect market" and "free market" to get clarification on his comment.

"All men having power ought to be distrusted to a certain degree." -James Madison

"If government were efficient, it would cease to exist."

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I almost thought that the guy was trying to debunk you with the perfect competition model, but I really can't tell what he's talking about. I'd just ask him some questions to try to figure out what he's getting at. 

Yes, I am a huge Dodgers fan.

Anti-state since I learned about the Cuban Revolution and why my dad had to flee the country.

Beer, Guns and Baseball My blog

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Hmm. Let me just ask the question, then, is a free market a perfect market?

I don't think so, but am not well read on that.

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There is really no good answer to your question until you (or, really, the commenter) answer ricarpe's questions.

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Free of 'insider' influence?

It seems to suggest that a 'market' is something in which no people are involved.  products are just lying around waiting for no one to want them and no one to sell them.

A perfect strawman of something unusable, nonexistent, and so easily refutable.  Or some Platonic ideal. The minute anyone is introduced into a market situation, then, it is equivalent to 'intervention'.  And so all intervention is roughly equivalent. 

And influence is not clear.  It seems to be hiding the gun in the room by not using the word 'force'.  And again making equivications:  influence is the same as force.  Which is ludicrous.

For if the president tells me not to buy beer and leaves it up to me, he is influencing my decision perhaps.  That is quite different than if the president makes a law incarcerating people who buy beer.  Which is influence, but also something in addition.  Just like if someone wants something  and asks it is different than if they pull a knife out and ask.  As women will attest, sex is a different experience than rape.  The type of influence:  being drugged, being at knife point or gunpoint, or simply agreeing consensually makes a hell of a difference.

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A freemarket doesn't have a goal. Hence it cannot fail.

It is the summary of voluntary exchanges on the market.


Ron Paul is for self-government when compared to the Constitution. He's an anarcho-capitalist. Proof.
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bbnet replied on Sat, May 28 2011 12:10 AM

In reality, a free market "really" is seeking perfection but never attains it. A perfect market only exists theoretically.

A free market exists thanks to insider and outsider influence.

A free market regulates itself.

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And we are not sent here by the politicians you drink with - L. Dube, rip

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