Free Wheeling Market Theory

In the United States, I have often heard the proposal that most national issues (not just budgetary) could be alleviated if the government simply stopped its "interference" in business. The biggest problem with this argument is it ignores a ready example. There has been a model in place for many years, but it isn't demonstrating the outcomes claimed by those pro-free market, "laissez-faire" individuals. This may be why those same individuals won't even acknowledge it. The un-regulated, un-incentivised, and un-taxed market I'm referring to is one where goods are available despite the government. So what is this market that is not "interfered with" by the government? Why has it not been incorporated into the main flow of commerce? Because all the goods on the Black Market are illegal.

Of course the example we have is one outside the law, since all other goods and services have been regulated. Their wares include illicit drugs and guns, people (in the form of slaves/prostitutes and other trafficked individuals), and counterfeit or other prohibited items.

I will briefly address the list of grievances from the pro-free marketers: regulations and oversight, incentives or subsidies, taxes, and public (or common) ownership.

The only form of regulation is law enforcement, once past that it's wide open: there is no paperwork, oversight, inspections,  or stockholders to answer to. There isn't any OSHA, safety inspections, quality control, or equal opportunity employment; no right to sue an employer or organize a union, no arbitration or unemployment insurance. Without regulation, workers in the fields involved are egregiously unsafe. Consumers are at risk for more than just lost investments, and have no recourse when injured.

There are no government loans or insurance to get a business started or keep the doors open. This means that any entrepreneurs looking to enter the field must seek investments from private individuals. Also, there is no training program or college degrees to prepare for any of these fields, which makes for excellent opportunities for scams and swindlers.

Another problem is that demand does not drive price-it certainly creates impetus of supply, but it cannot impact how much suppliers charge. There are a limited number of competing suppliers (and often this competition involves literally making a killing).

Finally, these businesses pay no taxes, and that means tremendous amounts of lost revenues for helpful governmental programs. The only taxes or fees for operating one of these businesses are bribes, and that means money going to certain individuals who already have power and not distributed fairly amoungst all citizens. Since they don't offer stock or open to investment, there is no opportunity for citizens-at-large to benefit from the business.

There are risks for these businesses: loss of product, competing providers, and potential for actual governmental interference. Which may be why these areas are illegal, but ineffectually dealt with.

I'd like to pretend that cops are good, laws are just, and that crime doesn't pay. I'm old enough to recognise these notions are myths. If crime didn't pay, we wouldn't still have cocaine, hookers, and, well...politics-as-usual.