The Free Market – Monopolies Will TAKE OVER! (Crony Capitalism vs The Free Market)

In this video, I run through a simple scenario of what a true free market economy might look like. How would it play out? Imagine that all the cronyism and government intervention disappeared and the market became truly free. Pure capitalism as some might describe it, or Laissez-faire. Would this fix all of our problems? Would monopolies form? Would prices go up? Would competition be stifled? Many proponents of capitalism say that although our current system looks a little bit like capitalism, it really isn’t in that businesses with lots of money can essentially buy government favours, that is, they can “lobby” the government to give them an unfair advantage in the marketplace. This is often in the form of subsidies, grants, tariff protection, tax breaks, and so on. Whenever you hear somebody say, “The market is rigged!”, this is typically what they are referring to — so called “crony capitalism”. Technically, most of us live in what we call a mixed economy, an economic system with some elements of freedom, but one which is heavily controlled and regulated by the government. Just look at any of the tax laws in your country — they’re unbelievably complex. They incentivise some industries while penalising others. It’s certainly not a free market. In this environment, it’s only natural that businesses try to manipulate the government through lobbying, and so on, to acquire some kind of advantage in the marketplace. Crony capitalism is just an inevitable consequence of the system that we have set up.

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[jarrodhockley]

Free as in unregulated markets are way more complex and do not tend towards entire monopolies... that only happens if you have an entirely normed society.. the moment that you introduce the variations of culture and choice even moral paradigms that affect value conception to a society then whilst monopolies will exist they will not represent the entire market. essentially we have never had a fully free market and especially not one within the (internet age) i suspect the horror's of a fully Socialist way of life being fully enforced in the internet age would be far worse... but only time will tell. essentially to all, pick your poison but know that all choices are poison one way or another without exception, because the dose makes the poison and society tends towards higher doses in everything we do...

Hi Daily Rant. I work for one of these companies. Formerly a family owned and run business in Sydney sold to an America company doing exactly what you are pointing out. They closed our factory and moved it to Texas to join up with three other companies from the same industry. I am the only engineer left that they decided to hang on to, working from home.

[anthony]

Thankyou for explaining our corrupt and criminal system

[alexgreenbergmusic]

I think without so much government intervention, companies wouldn’t need to move production off shore so much.

[immanuelt]

One would expect you would've atleast done your research on how the free markets protect against monopolies before going into a rant about it

[extremistindustries]

A true free market would also cut the red tape in terms of policy, qualifications and council nonsense, would it not?
Competency or quality would be seen by potential buyers in online reviews. The over regulation of many industries makes it very difficult, time consuming and expensive to be able to open shop.

[AussieMoneyMan]

Giggled at Banana electronics. Great video once again.

[duncanearley]

Great video. However in real life some companies would refused to be gobbled up.

[AlienLivesMatter]

Australian cronyism hasn’t bettered outcomes for most end users.

What has occurred is kickbacks and loopholes for profiteering.

Privatisation has demonstrably failed, just look at deregulated dairy, banking and price gouging from privatised power generators.

Balance and symbiosis is needed with an approach that focuses on end users.

Including more accurate metrics that better reflect the reality of most of the population.

The ignorant, shortsighted and rigged data used currently fails the greater good.

[TheSnowLeopard]

Before there were sovereign governments, there was a hypothetical "free market". Guess where this ended? Yes that's right, the systems we have right now.

[johnp]

Noah Chomsky is a legend, another great video

[bharathreddy]

I totally disagree with your view point and very narrow thinking. Monopoly happens if the government is corrupt and favours few big companies.On the contrary free-market will eliminate monopoly by competition.

[shammaalali]

what's the difference between capitalism and free market

[HeiseSays]

Your tool example is too simple what about budget tools who bought up all the tools that were on sale and then started a company to on sell them at a later date destroying the monopoly.

Think about it, the only monopolies that exist are because of the state and they are artificial. Look what Uber did to the taxi monopoly and the benefit for the end users and people wanting work and freedom?

[tonycoz]

Ain't Capitalism then again what is the option? Currently greed and gluttony have taken over the system. The fall will come. It's only a matter of time.