What’s your take on this Free Market quote by ‘Why Nations Fail’?
“The rise of Robber Barons and their monopoly trusts in the late nineteenth and early twentieth centuries underscores that, as we already emphasized in chapter 3, the presence of markets is not by itself a guarantee of inclusive institutions. Markets can be dominated by a few firms, charging exorbitant prices and blocking the entry of more efficient rivals and new technologies. Markets, left to their own devices, can cease to be inclusive, becoming increasingly dominated by the economically and politically powerful. Inclusive economic institutions require not just markets, but inclusive markets that create a level playing field and economic opportunities for the majority of the people.”
This is a simplification, but they argue that extractive institutions— both political and economic—are where there is absolute power and monopolies, and thus, why nations fail. Meanwhile, inclusive institutions are where there is decentralized power and healthy competition and thus, why nations win.
As someone who believes in free markets, this is something I’m thinking about a lot and would love to hear another opinion or possibly links to counter it, as most libertarians or anarcho-capitalist from previous posts and articles seem to be in favor of the book despite the conflicting main point of it that free markets can’t work alone.
Article from r/Libertarian: For a Free Society