Constitutional Libertarianism

Constitutional Libertarianism

Saturday, May 27, 2017

Free Market Capitalism vs Crony Capitalism

In Capitalism, people who create, produce and own things are able to buy, sell, trade or barter with other people in the marketplace.

In a Free Market, anyone is able to bring their offering to the marketplace.  If it is a competing item with what someone else offers, both parties must up their game, offer better in the form of quality, quantity, service, support, etc... in order to continue being present and profitable in the market.

In Crony Capitalism, competitors use their relationships and connections with bureaucrats to use laws and regulations to prevent and remove competition instead of having to up their game.

It is a misconception that a Free marketplace is unethical as decried by socialists and others more interested in privilege and entitlement.  The free market corrects itself over time.  It need not be a limited or restricted market by disallowing potential competitors and new vendors from participating.

In fact, by allowing for open and free competition , producers and vendors become more creative.  They become more innovative and motivated to continue improving upon their original offering.

Some suggest that disallowing a market presence to "outsiders"  that local economies are protected and supported.  Others suggest that by disallowing access to those using unethical and poor quality, service and practices, it creates a more "fair" marketplace.

Truth be told, regulations on a marketplace tend to stifle competition, make vendors lazy and de-motivate creators and vendors.

Regulations do not keep producers and vendors ethical.  Government cannot legislate morality or ethical behavior.  Consumers and buyers in a Free marketplace take their ethics with them.  By making it clear that the buyer will not negotiate with a producer or vendor engaged in what the buyers see as unethical practices, vendors have to either change or risk being unprofitable and unsustainable in the marketplace.

The market "corrects" for unethical behavior because buyers demanding ethical practices will enforce it, not a government or bureaucracy.

The only regulatory action necessary in Free Market is that which prevents or interrupts harmful practices, materials or things otherwise known or most likely to cause actual harm via use,  production, contractual or deceptive marketing.

Free Market Capitalism offers opportunity for anyone to is willing to take acceptable risks for themselves and attain what they choose to achieve.  Whether it is status, wealth, or anything else.