CONservatives and LIEbertarians like to, or pretend to, believe in a free-market that is self-regulating, efficient and all-knowing. However there is a little problem with that assumption..
IF the free market was even 25% as good or real as its promoters tout it to be, it would be the default system of socio-economic activity throughout human history.
Its promoters are unwittingly touting it as a minimum energy path through the potential energy surface of human nature and civilization. So why don’t most people adopt it? Why do we require a boatload of laws to make the free market work? Why don’t civilizations, nations and cultures naturally slip in the direction of the mythical free market?
If you pour water over a landscape (thought experiment), most of it would ultimately gather and flow along low energy paths. The same is true of molecules (low energy conformations), electromagnetic phenomena (think electricity) etc. The universe seemingly abhors high energy states and pathways when low energy ones are readily available and accessible.
So why would such a supposedly self-regulating, efficient and all-knowing system not be the default socio-economic system. After all, it is touted to be based on human nature and shortcomings.. and has supposedly lower transaction costs than other systems. So why does it not work like that in real life or human history?