7 votes

Rothbard on the Myth of the "Free Market Cartel"

One of the most common critiques I hear about anarcho-capitalism or just free markets in general is the idea that, without government, cartels will emerge to control certain sectors of the market and collude to keep out competition. This is funny to me as the only cartels I know have either been directly created by government (The Federal Reserve banking cartel, for starters), or have emerged amidst the violence of a black market created solely by government prohibition (the mafia and modern day drug cartels). Nonetheless, such myths can often be difficult to refute if one isn’t fully equipped with a good answer.

Enter Mr. Libertarian himself, Murray Rothbard. In this week’s edition of “Mondays with Murray”, we take a look at an excerpt from a Rothbard speech where he discusses this very myth, and effectively blows it out of the water. No cheating and skipping ahead now, take the 5 minutes to give it a listen!

Murray busts through this myth by actually discussing how some companies did attempt to create cartels in the late 19th Century, during an era where the economy was so free and robust that the prices of goods and services were falling across the board. This, of course, is a sign of a very healthy economy. But some of the less efficient companies instead began to merge and create cartels in attempts to fix prices and lock out competition. So it is true that the objector to anarch0-capitalism that companies may attempt to form cartels.

The problem with this theory? These attempts to cartelize were complete failures.

Continue reading



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

The Hurricane

Almost ruined by Monday by missing Murray.

thanks

love mondays with murray!

Thanks

Good to know we have some regular readers !

http://lionsofliberty.com/
*Advancing the Ideas of Liberty Daily*

Thanks for doing it!

Rothbard is the shit. I wish I studied rothbard more than I have, so these mondays are great.

Obama and Romney

need to see this video. They don't understand that falling prices is an indication of vibrant economic growth.

Exactly

Reminds me of Obama's "low gas prices" comment in the debate

http://lionsofliberty.com/
*Advancing the Ideas of Liberty Daily*

Hopefully

All those east coasters stuck at home in the storm will dedicate themselves to libertarian learning today.

Unless

Unless their power goes out. Hopefully they thought ahead and printed out the Rothbard Collection, an essential for any survival prep.

http://lionsofliberty.com/
*Advancing the Ideas of Liberty Daily*