The fundamental flaw with the free market concept is that is foregoes, dare I say ignores, one critical aspect of human nature — the very Hobbesian fact that we are all inherently selfish. The free market sounds cute in Intro to Econ class but as the author said, it becomes a very different story when it is applied to real world businesses and industries.
- You cannot have a completely unregulated market because at some point that thing called human nature kicks in and decisions harmful to the benefit of society kick in.
- Trickle down economics never works because you have three different options with using money; spend it, save it, invest it. When money/savings/tax breaks are passed to the rich trickle down economics does nothing to ensure that those beneficiaries do not act in their own self interest. Why would they? It is the free market after all.