Why the Free Market is Destined to Fail

Want to learn more about free market economy? I recommend these two short videos. Make sure to watch them both, as they have opposite perspectives on the matter.

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[LarryHatch]

Fine ideas all. FME already went of existence over a century ago. When did we (any we) get a free market economy? We had some 150 years ago but rarely since. Any industry with governmental influence (taxes, fees, regulations, tariffs) by definition is not an FME. I asked a friend who is an economist and he verified we have no true FME today. The closest is New Zealand with a 80.6% freedom index. A leading American dictionary says this:

"The United States no longer has a free market system. Instead, the United States now has a managed economy-- by definition, a nonmarket economy since it doesn't exist solely on supply and demand [source: Merriam-Webster]."

One very basic human function explains this. There are literally 22 different taxes involved in buying a roll of toilet paper in the US from the planting of the original trees, producing pulp and paper, pollution, unemployment tax, social security tax, income tax, property tax, transporting everything along the way, delivery to stores, to the sales tax on the retail purchase.

[alphacause]

Unfettered growth in living organisms is called cancer. It stands to reason that growth in economies, without constraints or consideration for the broader consequences, can similarly be described as laying the ground work for a societal malignancy.

[JanuitGroningen]

Thank you Mary Jane for this topic. It has released a lot ☺

[seanwalker]

Capital is fluid. Companies producing a product or service that has saturated a market do not need to artificially create demand in that market. They can pursue new profit by various means, such as expanding their share of the market, becoming more efficient or spinning off their product in new ways that (naturally) serve different needs. Failing all this, their profits can be reinvested in completely different enterprises, directly or indirectly.

You seem to be reasoning backward from an ideologically perspective. The reality is that free market capitalism, although not without blemishes, has served to lift humanity out of hunger and poverty.

[davidoverbye]

You raise some excellent points as always. Economics, as a discipline, kind of grew out of philosophy but then got taken over by an obsession with mathematical modeling. These models led people to believe that it was possible to plan and control economic systems from the top through government - either through central planning or extensive regulation. Hence the 20th century. The latest thinking is captured in the ideas of behavioral economics. The Wikipedia entry does a good job of explaining it. The newer thinking is that if you want to change the macroeconomic environment you have to change the behavior of individuals. There are many ways to do that - advertising, communication, education, legislation, etc. - but one of the newer ideas is called nudge theory. Wikipedia does a good job of describing that as well. Check it out. An interesting implication of this is that recent changes in the way people receive the information that provides these nudges to their behavior has changed dramatically with social media. The theory also posits both consumers AND producers can be influenced in this way. It is an interesting idea. We know that laws like prohibitions on things like narcotics don’t work. You would have to change the behavior of both the user and the supplier to change the market.

Another great video. Thank You for sharing your thoughts.

[davidellis]

Hi Mary Jane - I am a stroke survivor who takes six pills daily. These pills " manage " my condition but they don't heal anything. They mask the reality .. but that's how the system works. In a highly diminished way I still function. That's all that matters.

[simonedylan]

Ma le friulane sono tutte così carine e intelligenti?

[roelofgrootenhuis]

It seems the fundamental issue underlying all of this is greed (on a corporate level = profit, personal level = value). And then the question becomes: how can we systematically reduce greed in the population? Cultivating gratitude, encouraging upcycling, recycling, sharing our resources are intuitive answers. But even some forms of generosity may contribute to the problem. Consider the notion of 'paying it forward, ' it's a nice idea but probably further adds to the issue of excess consumption. I think we are shaped to be greedy by the ubiquity of advertising and other marketing strategies, and the ensuing network effects ('keeping up with the Joneses'). But to answer your question about potential solutions, I think the key lies in educating people about how and why they are influenced by these various forces. When I first learned about Marx & Engels Commodity Fetishism, Benjaminian Auras and Foucault's 'author function' in an anthropology course, it really opened my eyes. Obviously a different approach is required for different types people to help them lift the veil and see what is going on (which you so eloquently described in this video), but I really do believe that education is the answer. Considering your philosophy background, I would love to know what concepts/research/ideas have informed your views on this topic!

[MP-uteb]

3:47 ci sta ;) non capivo dal tuo accento ;) eccellente inglese complimenti ;)

[JohnHarrerHorses]

I came over to check out your channel. I love videos that make me think. I'm looking forward to watching more. Thanks for the nice comments.

[enricos.]

Ero partito prevenuto, lo ammetto, ma alla fine del video ho cambiato idea. Mi è piaciuta molto questa tua riflessione pur restando un convinto sostenitore del sistema capitalista. Penso che il sistema capitalista rappresenti l’uomo e si adatti ai suoi cambiamenti. Penso ne sia in un certo senso lo specchio. Perciò sono fiducioso che con l’emergere di una nuova sensibilità e consapevolezza ambientale e sociale anche il sistema capitalista, senza snaturarsi, potrà adattarsi. Io stesso sto avviando delle attività e nel mio piccolo mi pongo tante questioni etiche a 360 gradi. Vedremo e speriamo

[viorelgheorghe]

Things are not so simple as producing more to be competitive, it is about producing cheaper and more efficiently which is going to drive out businesses that consume more resources to build the same product or service. And let's not forget about the demand, the amounts that are produced are produced to meet the demand for those products, and the free market is the most efficient system of meeting that demand!

[briansykes]

This video raises many valid and interesting points, to which governments are devoting very little energy. However I do not agree with the conclusions (although I would have to write tens of thousands of words to explain why). But just to take one (very important) issue - human nature . You cannot say "one should not have greed". The desire for more is inherent in our make-up (or in many citizens' makeup). A "solution" has to take this into account - channel greed into something positive. I have some ideas as to how to do this, but this is not the best place to present them.

[joea]

Goodness just love the way in which you think and in turn make me think of or on issues. Excellent my dear. I wish here in America more politicians would think in this way and we might get some things done, but then again the greed of individuals and the money that big business throw's into the game is to enticing. As an older person also dealing with medical problems it is to easy to see how medical practice in the US is so driven by money as apposed to solutions to the base line problems. I am now a big fan of yours and am eagerly awaiting for your posts. As always please stay safe and much love to you. .

[antonellabianchi]

I like your channel because is very interesting

[neosoulove]

YESSSS THANK YOU. I'm having arguments with my friends who want socialism and I keep trying to tell them capitalism isn't the problem... It's GREED. We need systems that BALANCE and restrict that greed. These folks want MORE wealth and to pass the wealth... that's imperialism....we need TRUE capitalism to balance these things

[onceupongeorgia]

I'm following you, long time and get surprised, you really have intelect and analitical mind! Well done!

[davidgordon]

Thank you. I would suggest that you study and understand how it is that the idea of a “free market “ came about in its current form. Then think again. Everything you said has great relevance to this debate. However, the “free market “ as it is today is the opposite of what Adam Smith postulated. Read the Wealth of Nations. Please.

[sergiocopiello]

I disagree with two thirds of your reasoning, and the philosophical approach to the economic theory as well; nonetheless, I find it intriguing and challenging, thanks!

[emricegbert]

Also, a free market just means that people are free to exchange whatever they want with whoever they want.. sounds like your argument is more mad at government-run enterprises and not the free market.