The Misconceptions About the "Free" Markets.
As of late, "free" markets have gotten a lot of press. Mostly, from the libertarians who pronounce its glorious sacredness at every turn. Yet, I have to hear one actually explain how it will work. In fact, if you watch Ron Paul, his answer seems to be that everyone else is ignorant and not him. Well, Mr Paul, as an educator, I find it necessary to correct your misconceptions about the "free" market. You can begin by reading Adam Smith's,
The Wealth of Nations. In this well written book, Smith discusses such concepts as self-interest, competition, laziness, and the "Invisible Hand." The Invisible Hand guides the markets to improve productivity and lower prices. However, in order for the Invisible Hand to work properly, two criteria need to be meet. Sellers have to be honest and transparent about their practices and products. Now, Paul thinks honesty and transparency just happen by magic and don't require government intervention. The problem is that we have a cliche based on this lack of honesty and transparency: the snake oil salesman.
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