The free market is inefficient
Free enterprise is an inefficient system of contributing towards the greater good.
Wastage due to competition
This includes:
- marketing
- advertising
- duplication of effort of developing the same technology in isolation
- duplication of effort of administrative efforts such as payroll
- legal related defense and offense
- regulation (still required with no free enterprise societies but self regulation is more efficient than the law creation, auditing, policing process)
- taxation efforts
- shareholder reporting
Rent-seeking behavior
Rent-seeking behavior is commercial activity which does not create new wealth or provide services, but shuffles wealth around. As no new wealth is being generated but effort is being expended the net result is the destruction of wealth.
With free enterprise as the financial sector develops rent-seeking behavior increases.
The greater good is not the goal of enterprises
A companies goal is to maximize shareholder benefit. This can align with the greater good but often doesn’t.
- Facts are withheld from consumers to manipulate them into buying.
- Products and services attempt to manipulate people in a subtly damaging way such as stimulating insecurities.
- Environment destruction (or simply wastage) is not a primary concern when profits are being made.