I’ve been in countless debates with my friends. Most of which already believe in the free market, yet they aren’t sold on the free market. They believe that the free market cannot function on its own after years of being indoctrinated by statism in schools.
They understand that the market is more efficient than government, yet they are scared by the idea of anarchy. They correctly believe the market is run by rules, but they think that the government is responsible for making those rules.
This is true to an extent, yet their logic makes them believe with the absence of government, rules would cease to exist as well. However, markets provide better rules than any bureaucrat could.
In the market, there is only one thing that matters – providing value to others. That is the basis for all the rules coordinating the market. If you don’t provide value, whether to employees or consumers, you go bankrupt.
In government, there is only one thing that matters – getting reelected. That is the basis for all the rules coordinating government. If you don’t get reelected, it’s akin to going bankrupt for the politician.
The government does create the rules today, but one of the most important lessons of economics is Bastiat’s idea of what is seen and what is not seen. This same lesson applies to the creator of the rules.
On the surface level, it is seen that the government creates the rules. Yet, if you dig deeper, you realize what is not seen is that the market creates the rules.
The market usually pays more than minimum wage. The market is responsible for ending child labor. The market even gave you the weekend. That is what is not seen, even though the government has tried to take credit for all of it.
It makes sense that the market would be responsible for these shifts. They must provide value. Conversely, it makes sense that the government would take credit for it. It helps them get reelected.
The important aspect is to not conflate the two. Just because government will always try to take credit for the accomplishment’s of the market doesn’t mean they actually achieved the accomplishments. Like all governments, they are just stealing from private citizens.
Anarchy is not no rules, just no rulers. If the market works, the market works.
Source: Gimme Liberty