If money is blood, the market is the circulatory system..
I have pointed out before that it’s impossible to have a market without the state, whether it’s run by an emperor or local gangsters. A store without protection is quickly looted.
So it’s up to the state to regulate markets so that they fulfill their mission— to serve as a substitute for small scale systems of status-based exchange. It’s necessary and right to regulate the market as the market depends on regulators to exist in the first place.
Those who are most important to the survival of society naturally should have the most influence points, while there is a natural duty for society to protect itself from malicious people by denying them influence points. Those with low potential to return value or who are sure to make bad decisions with their influence have to be kept near enough to subsistence that they can’t do much harm.
We’ve established free markets are highly volatile and far from perfect in coinciding with the interests of society.
Even in an American culture that worships the market economy, there are plenty of laws dealing with everything from monopolies to insider trading. The existence of such laws in even the most permissive states is tacit admission of the necessity of state interference. The only question is how much interference there should be.
The market is a tool to further the good of a people, since it is an extension of customs of redistribution that further the good of small tribes, thus the purpose of regulation is to keep the system to its purpose. We suppose it is a good use of a hammer to drive in a nail and a bad use to shatter someone’s kneecaps. We can suppose a good use of a market is to make a people strong and a bad use to weaken everyone to enrich a few parasites and entertainers. Used well, the market allows a group to get rich and outcompete less wealthy groups. Used poorly, it allows an entire society to destroy itself.
The trouble with a system of “free market” capitalism is the implicit belief that the market exists for its own sake, not to serve the best interests of the social body in which it is but an organ. We should do as well to conclude that our own bodies exist for the good of the heart and arteries. So if the brain, liver, or muscles were to suffer a blood shortage it is the will of the almighty drop of blood and evil for the brain to regulate the heart to more evenly distribute the blood supply throughout its organs. Or if there were parasites in the blood, to conclude the veins “know” what’s best and to restrain the immune system because the parasites “earned” their place.
Isn’t it odd that when we examine more closely, the very idea of a “free market” sounds like a scam?