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by tpmx 1407 days ago
Trade is capitalism. It's how we push forward. It's inevitable, but some people do hardcore roleplay that it's not. The world is worse for that.
2 comments

Trade exists apart from capitalism, and is found in any number of alternative economic systems. Capitalism is about who has ownership of productive assets. Conflating capitalism with trade makes it seem like no alternative economic systems are possible.
People trade under socialism and communism, too. Stone age tribes trade. Families trade. Communes trade. Everybody trades.
> People trade under socialism and communism, too.

In trivially provably less efficient ways.

> efficient

Economists and market fundamentalists keep using that word. I do not think it means what they think it means.

Economists know what words mean.
Efficiency can mean a lot though. It depends on what you want to maximize and what to minimize.
They also know that free trade is superior to planned economies, soviet union style.
Planned economies haven't worked in the US, either. For example, before Reagan deregulated the airlines, the airline schedules, routes, and fares were set by the FAA.

The result is airliners often flew nearly empty.

Once that was deregulated, a titantic shift occurred, such as the emergence of the hub-and-spoke system. Airplanes have been packed since then.

The FAA bureaucrats proved incapable of efficiently setting routes, schedules, and fares.

In the 1970s, the Energy Department decided a gas station's gas allocation. They did this for every gas station in the country. The result was simultaneous gluts and shortages of gas. Reagan deregulated that with his very first Executive Order, and the gluts, shortages, and gas lines disappeared literally overnight.

Planned economies just don't work.

You mean centrally planned? Companies plan decentrally.
At what level of regulation is a market free? As an example of a hard to capture word.
Regulation to prevent use of force and fraud, and contract enforcement, and dealing with externalities.