Capitalism guarantees the absence of ‘Free Markets’


Liberals espouse some kind of intrinsic association between the idea of ​​capitalism and a “free market.” More than that, they define this market freedom precisely as being fundamentally the absence of state regulation and intervention.

This conceptualization lacks substance. How free is a market in which there is only one monopolistic megacorporation? Or one in which there is an oligopoly of corporations in relation to “cooperatives”. In all sectors of the economy, several mergers are announced every year.

By 2019, a small handful of international megacorporations will be responsible for providing us with almost everything we consume, both in industrial goods and in services.

This was only possible under capitalism and its mythology of “competition without state intervention.” In a scenario in which the disparity of power among economic agents is immense, “free competition” serves only to further weaken the weak, and to strengthen those who are already strong.

Liberals, irrationally, place blame on regulatory agencies and other similar institutions that establish minimum criteria for the entry of new agents into particular sectors. In the liberal fantasy, for example, there should be no state oversight in the food industry, and who knows its oligopoly might be broken.

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Obviously, this is just a fantasy without any empirical foundation. The truth is that an economic arena can only be free under the tutelage and guidance of a state strong enough to break private monopolies, disintegrate oligopolies, distribute the means of production fairly equitably, and prevent private agents from overriding their selfish interests for good -common and the destiny of the people.

It is only in the antipodes of capitalism that we may eventually find greater market freedom.


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