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by AnthonyMouse 520 days ago
> These false dichotomies and unnecessarily tribalistic positions where pure devotion to free market capitalism is demanded are hobbling American society and its ability to maintain stability and take care of its citizens, since every attempt to suggest that some industries should be at least partially socialized, or even mildly regulated, are met with demagoguery and fear mongering.

The trouble here is that this is a misunderstanding of what free markets are supposed to be.

The idea of a free market is, if you have an oligopoly which is charging high margins and ripping people off, do you a) break up the cartel and restore competition in order to bring down margins, or b) impose price controls or otherwise regulate the oligopoly while leaving it intact. The premise of free markets is that you do the first one and not the second one.

The problem we have is that you often have one party saying "don't do either of them" and the other party saying "do the second one" and then the first one doesn't happen even though it's the thing you want. The premise here is free market competition, not free market monopolization.

You have a different problem with things like pollution. That isn't something markets are expected to solve, in the same way as you don't expect them to prevent theft or homicide. The problem then is, how do you solve the problem? "Have the government do it" is under-specified. The Soviet Union did not have a sterling environmental record. Outcomes and efficiency both matter, so you can't just give it to some unaccountable bureaucrats or they'll simultaneously drive up the cost of everything with red tape, fail to prevent the pollution, and get captured by incumbents who use the red tape to lock out competitors. So how do you apply competitive pressure to politicians? Maybe change the voting system, e.g. use approval/score/STAR instead of first past the post so you can have more than two viable political parties. Or stop trying to do everything federally and hand more back to the states, so we can have back the laboratories of democracy and have 50 chances to find the right balance instead of just one.