Sheldon Richman: Where Free Market Economists Go Wrong

Sheldon Richman hits the nail on the head in a recent post (excerpt):

What we have—and have had for a long time—is corporatism, an interventionist system shot through with government-granted privileges mostly for the well-connected–who tend to be rich businesspeople. This system is maintained in a variety of ways: through taxes, subsidies, cartelizing regulations, intellectual “property” protections, trade restrictions, government-bank collusion, the military-industrial complex, land close-offs, zoning, building codes, restrictions on workers, and more. As a result, people can get rich at the expense of the government’s victims. Even some who have prospered apparently by market means have actually done so through government intervention, such as transportation subsidies and eminent domain. Wealth can be transferred in many ways besides welfare and Medicaid, some of them quite subtle. Most transfers are upward.

via Where Free-Market Economists Go Wrong | The Freeman | Ideas On Liberty.

This kind of goes with my post from a couple of days ago. The difficulty is often with making small businesses recognize the cost of their actions won’t necessarily result in leveling the playing field – just decreasing the large pool of small competitors while the largest can go on largely unfazed.