The Free Market Is Here

June 17, 2015

Are you itching to reach Galt's Gutch and witness prices freely set by supply and demand, free from evil regulation by toxic authorities? Wait no more. Move to Somalia. Or Sudan, Libya, Angola, or any other of the paradises listed in the bottom of the Corruption Perceptions Index. Yes, you read it here. No need to vote for Trump or to gather with your objectivist buddies to purchase an island in the middle of nowhere. The future is here, now and the reach of your fingertips.

 

You see, a bit tongue in cheek, perhaps, but the fundamentals of free market capitalism are already seen in those countries (except for the protection of private property by that horrible, horrible government boys, of course). And, believe me, they're gobbling up those Friedman, Hayek and Rand books like hotdogs at a Dodgers game.

 

If the supply and demand model is reversed for labor, where suppliers are individuals who try to sell their labor for the highest price while consumers are businesses, which, in turn, try to buy at the lowest price. Apply that to corruption. And then remove all regulation, Voilá. In deeply corrupt countries all people have is themselves, and that may or may not include a determined turf of power, whether that be a DMV seal to approve licenses, or the keys to a warehouse with food or guns, or the waiting list in a hospital. That is, basically, all they have, and their supply is there waiting for the buyers to show how much they want, how badly they care, what's the highest price they are willing to pay for what supply can get them.

 

So, there is a market with no regulation over the pricing mechanism. A profit motive is, oh yes! always there, although some may characterize it as survival instinct. Private property, protected and with its related transactions reliably recorded? Well, maybe not, but for sure we can draw some analogies about the protection of private property (or its simil as turfs of power for sell) is protected by how much the holder is willing to pay for its protection, whether that be by the "commission" sent upstairs or the actual, literal fighting over it. And, finally, there is competition, and at all levels: to topple the holder of the supplied "service", to offer better access than the competitors, for new "openings" whenever the turf of power (or "property") presents "entry barriers" in the form of government employment or other privileged position, etc. So, there is a reserve army of labor.

 

All of the above, without the malevolent intervention of the government armed with strict, intrusive rules, snooping around the everyday business of the exchange in the market for favors.

 

Enjoy!

 

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