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Tuesday, January 19, 2016

Black markets are not free

Black markets generally (I would say never but I can't really be sure of that) are not free. They come under the control of criminal organizations, who set prices and quotas and all that. To get and preserve a really free market takes government oversight preventing cartels and monopolies and price-setting conspiracies. The businessman will always seek to avoid competition by whatever means possible -- political power, strong-arm tactics, conspiracy, sometimes just sending price signals.(When companies succeed with price signals, regulators need to see this and start breaking up companies into even smaller pieces).

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