The Free Market Is an Illusion
In brief: The free market is not free. It encourages firms to externalize costs that are then borne by society rather than consumers; it is rife with subsidies and quotas that favor some firms and industries over others. The result is an economic system that is distorted and, as a result, unsustainable.
As demonstrated by Principle 6, although economic value and social value are highly correlated, the relationship is not perfect. In other words, not all of the potential value that society could possibly gain from a business transaction is captured in the profit generated by the firm. The reason for this is that our current economic model is distorted. Essential to building on Principle 6, therefore, ...
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