Economics by Force

In any economy, the population over all is best served with a free market system. However, any given individual in an economy is better off being personally exempt from the laws of the free market system while everyone else is subject to them. Suppose in the NBA a certain team had a few players who were exempt to the rules of the game. So these players were free to foul with impunity while everyone else got penalized. Rather than the referees telling them what to do, they told the referees what to do. That team would win every game it played in. The anointed basket players would be engaging in basketball by force. The success of the NBA depends on the game being fair so cheating is not allowed.

An a free market economy, as far as rules are concerned, works in the same way as a basketball league. Except that in a basketball league players are not allowed to break the rules. With respect to an economy, it is possible to break the rules. Countless dollars are spent lobbying all of government, just to get permission to break the rules and it works.

The most positive attribute of a free market system is the absence of force. Before the advent of free markets, force was the main system used for rationing goods and services. Wars were fought for this reason. Even after the free market concept evolved wars continued to be fought either for economic gain or to avoid loss. Free markets actually are the only reason peace has been experienced anywhere in the world.

So what is a trade war? A trade war is economics by force and one can escalate into a shooting war almost in a heartbeat. What is a government fiscal stimulus package? It is economics by force. The

 

 

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