The blog of a North Country Swede!

Monday, May 21, 2007

On free markets and free trade

Even dear Milty Friedman admitted before he passed on that there is no such thing as a "free" market ... and there certainly is no such thing as "free" trade.

It is hard to imagine any science resting on certain economics assumptions that are taken quite literally as gospel ... for instance, what if meteorologist ascribed the funnel shapes of tornadoes to "The Invisible Hand"? ... or physicists, the flowing of sand through a funnel falling into a perfect cone? ... or an ocean whirlpool?

Why is there no such thing as "free" in markets or trade? Because the underpinning of "free" markets and "free" trade is the pursuit of self-interest in each micro-transaction ... which can only work as long as there some sort of equality between the actors (those individuals [and corporations acting as indivduals] participating in the transactions) ... but the very nature of pursuing self-interest is to gain AND accumulate advantage ... and BECAUSE these individual actors are NEVER equal there will always be the gaining and accumulating of advantage.

And like my REAL scientist friends tell me: Duh!

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