- Nov 2018
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- Aug 2018
Anomie (/ˈænəˌmi/) is a "condition in which society provides little moral guidance to individuals". It is the breakdown of social bonds between an individual and the community, e.g., under unruly scenarios resulting in fragmentation of social identity and rejection of self-regulatory values.
I can't help but see this definition and think it needs to be applied to economics immediately. In particular I can think of a few quick examples of economic anomie which are artificially covering up a free market and causing issues within individual communities.
College Textbooks: Here publishers are marketing to professors who assign particular textbooks and subverting students which are the actual market and consumers of those textbooks. This causes an inflated market and has allowed textbook prices to spiral out of control.
The American Health Care Market In this example, the health care providers (doctors, hospitals, etc.) have been segmented away from their consumers (patients) by intermediary insurance companies which are driving the market to their own good rather than a free-er set of smaller (and importantly local) markets that would be composed of just the sellers and the buyers. As a result, the consumer of health care has no ability to put a particular price on what they're receiving (and typically they rarely ever ask, even more so when they have insurance). This type of economic anomie is causing terrific havoc within the area.
(Aside: while the majority of health care markets is very small in size (by distance), I will submit that the advent of medical tourism does a bit to widen potential markets, but this segment of the market is tiny and very privileged in comparison.)
But that state of consciousness that permits the growth of liberalism seems to stabilize in the way one would expect at the end of history if it is underwritten by the abundance of a modern free market economy.
Writers spend an awful lot of time focused too carefully on the free market economy, but don't acknowledge a lot of the major benefits of the non-free market parts which are undertaken and executed often by governments and regulatory environments. (Hacker & Pierson, 2016)
- Nov 2014
Funny how Corporate America loves the term “free market” except when they are under threat.
Author misses the point here. Corporate America loves the term "free market" only when it is under threat. A "free market", as we know it, is anything but free. It is regulated into existence by "free trade" agreements and the like.