Saturday, October 29, 2005
Just a note on a most self-evident thing that curiously seems to escape the free market enthusiasts: companies behave like the classic economics would have people behave - in their rational material interest. The corporations operate to maximize their own perceived short and middle term economic interest. So even though the top management might fervently belief in free competition and free market principles in general, the organization they lead will attempt to quench competition and restrict the free play of supply and demand at every opportunity. That is why we need state regulation: the private corporations would unsupervised destroy the free market and establish mercantilist baronies. The most self-evident thing there ever was: this is how human nature works in institutions and organizations - or how institutions and organizations work through human nature.