My answer to Why does free market economy win against centrally planned & controlled economy?
Answer by Desmond Last:
The win is not for long. In economics the only constant is change. Any free-market economy has as its system of implementation – captialism.
The growth required by the destructiveness of capitalism ie growth through a concentration of resource ownership and its monopoly like ownership of capital will eventually result in the free-market being centrally controlled.
There is no such thing as an entirely free market. If there were then supply and demand would intersect and we would all be satisfied. Supply chains suffer margin dissatisfaction and demand has to pay the resource cost of ‘demand met supply’ ie the use of ‘Just in time’ to satisfy consumer demand.
Yes we need a free market. Central planning had proven to be wasteful and provided monopoly power. That is why the free market wins. It allocates by choice and need.
But to have a free market where buyer and seller are treated equally we need an economic system which ensures that capital is not monopolized and the supply chain is free to make rational choices.
How free is the High Street trading market? Small shops have to compete against chains of International Supermarkets who also control the supply chain. It is the large multinational retailer who determines the gross margin for the supplier. Customers have less choice and have little influence on product choice – which is to the detriment of the National Economy.
The free market will only be free when it is part of an economic system that does not allow control of capital to favor the multinational expansion that has displaced labor and weakened economic sovereignty.
As our economizes become dominated by large multi-national companies the free market becomes the centrally controlled economy. Decisions are increasingly made by a few which effect billions of people.
The only way to stop the gradual movement from the free market to the centrally planned economy we are by default inching toward, is by freeing up capital for the small to medium size business, and comparing economic advantage in order to reduce wasteful competition.
I do not think Governments really understand that the free market economy is on its way to central control and they are losing economic sovereignty. Either that or they are getting the wrong advice for the right reason.