Saturday, September 19, 2009

Collusion and Free Markets...

... are incompatible. It remains one of those annoyances of mine that supposedly "socially minded" individuals complain that the natural outcome of free markets/capitalism is collusion and autocracy. From Greg Mankiw, a reminder of the words of Adam Smith:

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.

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