The market didn’t need regulations to maintain its freeness back then because the vast majority of transactions were made with small businesses. The limited technological capabilities in transport and communication also decreased the need for government regulation by decreasing the ability of the largest concentrations of capital to succeed at implementing global anti-competitive strategies.
To achieve the same degree of market freedom today, in the era of omni-national mega-corporations wielding monopoly influence, requires utilizing levers of power outside of the market those mega-corps dominate. The intervention of democratic governments to enforce anti-monopoly laws and prohibit other kinds of anti-competitive behavior is a necessary component of any plan to transform today’s marketplace into one that looks more similar to the market of Adam Smith’s day.
The market didn’t need regulations to maintain its freeness back then because the vast majority of transactions were made with small businesses. The limited technological capabilities in transport and communication also decreased the need for government regulation by decreasing the ability of the largest concentrations of capital to succeed at implementing global anti-competitive strategies.
To achieve the same degree of market freedom today, in the era of omni-national mega-corporations wielding monopoly influence, requires utilizing levers of power outside of the market those mega-corps dominate. The intervention of democratic governments to enforce anti-monopoly laws and prohibit other kinds of anti-competitive behavior is a necessary component of any plan to transform today’s marketplace into one that looks more similar to the market of Adam Smith’s day.