All Markets are Regulated

In my sixth and final lecture for the “Everyday Economic Errors” series, I argue that it makes no sense to refer to any market as being unregulated.

All markets are regulated by the lure of profit and the discipline of losses.

Most application of this point focuses on how profit and loss constrain entrepreneurs’ production choices and processes. That’s true, and that’s the most important element of a capitalist system’s “regulatory” behavior. However, as I illustrate in the video, the profit-and-loss system also constrain the impulse toward fraud and discrimination.

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