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Comment by cwyers

Well, except there's all kinds of economic theories about how this isn't true: the tragedy of the commons, negative externalities. There's also a lot of evidence that rational actor theory isn't as true as pure economics would suggest. And of course market inefficiencies will distort price signals. And truly free markets have a hard time remaining such in face of large incentives for rational actors to instead engage in rent seeking or other anti-competitive behavior.

But yes, if you ignore all the problems both theoretical and practical with free markets, free markets work best.

parent cwyers 12 years ago

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