Introduction: The Illusion of the Free Market
The 2008 global economic crisis revealed deep flaws in the deregulation policies that have dominated the world since the 1980s. For decades, the public was told that markets work best when left entirely alone. However, this philosophy has frequently resulted in slower growth, increased instability, and stagnant wages for the average worker.
Economics is not a field that should be left exclusively to experts. Most economic concepts are simply common sense made to look complicated through technical jargon. By understanding that the current state of the world is the outcome of specific human decisions, citizens become better equipped to demand fairer rules.
Many people believe that a truly free market is a natural system that naturally directs resources to where they are most useful. In reality, a completely free market does not exist anywhere in the world. Every market is defined by a complex web of rules and boundaries that we often accept as invisible background noise.
The definition of a free market is a political choice rather than a scientific fact. In the early nineteenth century, many people argued that banning child labor was an unfair restriction on market freedom. Today, we accept this ban without question because we have collectively decided that the rights of children are more important than the right to hire them for cheap labor.
The prices we assume are set by the market are heavily shaped by political decisions. Central banks set interest rates, and immigration laws heavily influence the cost of labor. Because these foundational prices are influenced by politics, economics cannot be treated as a neutral science like physics.
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