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Calling a newly proposed regulation "pro free market" legislation is a little orwellian.


How free is a monopolized market? If a regulation outlaws monopolies, does it improve or impede the market's freedom?

Regulations that improve market efficiency are good. Regulations that impede efficiency are bad. In practice, we do need regulations because real-world actors are not optimal rational agents.


I can see it from that point of view. I purposely don't use the phrase "free market" though, because I don't share the assumption that complete freedom is what leads to an efficient, well functioning market. There is all sorts of manipulation that is required for a "good" market, i.e. one that fulfills the goal of efficient allocation of goods.

The most basic is the enforcement of contracts, which I think everyone agrees on.

But regulations about truth in advertising fit in there too. Lists of ingredients and nutritional information on packaging are an onerous regulation that allow consumers to make better informed choices (and so lead IMO to a "better" market). (I think brand ownership transparency is close philosophically to requiring ingredients on food products.) There are many examples of regulations that promote market efficiency, which sellers don't like because they may have been making profits from the inefficiency, or from information asymmetry.

There are of course regulations which degrade market efficiency too, either by regulatory capture or ill-thought out "consumer protection" like price controls, rent control, etc.

My overall point is that the assumption that a market with the fewest controls is de-facto the "best" market should be examined closely - manipulations of the market (whether by regulation, taxes, etc.) should be evaluated on a case-by-case basis based on whether they promote or degrade market efficiency.


Okay. How about pro-efficient markets? Because certainly markets completely unrestrained leads to rent seeking.


The orwellianism already exists in the technical definition of "free market". The proposed regulation would be anti-lassiez-faire, but pro-free-market, to use the terminology that economists have pushed.




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