Saturday, December 13, 2008

The beauty of the free market
What characterizes my relationship with these several proprietors? It is frankly, as if we are all buddies. This is the miracle of capitalism.

The free market gets a lot of bad press these days, but this is the result of a careless conflation of crime with free exchange. Corrupt business leaders getting in bed with government deserve to be called out (though one could certainly argue that this is not representative of a truly free market). Wal-Mart customers stampeding a janitor to death justly rouse disgust. But in its essence, the free market is a system of voluntary exchanges. The voluntary aspect of this makes each party responsible for himself and dependent upon the others. Each person is there because he wants to be, and this, coupled with the obvious desire to succeed, helps to build relationships.

This is not true in any other economic system. Surely it is not true in feudalism, nor is it true in socialism, which micromanages economies right down to who works in which job. Voluntary exchange would not even exist on an anarcho-communist paradise island, since everyone would be forced to pool resources.

The free market is the sole guarantor of voluntary exchange. It liberates us, so that we are no longer slaves, but free men — no longer slaves, but friends.

My mechanic is an old school Philadelphian — hard working, honest, direct, and as good-hearted as they come. He’s the kind of guy that looks you in the eye the whole time he’s talking to you. I instinctively trust him.
Mine’s German. Same idea.

From Michael Lawrence.

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