Tuesday, October 20, 2009

The internet: model of free market principles

Excerpts from: Witness the Freest Economy: the Internet from Mises Daily by Dan O'Connor

One of the few places in the world not yet plagued by government intervention is the internet. Although some governments in certain parts of the world have infiltrated the activities of the internet to varying degrees, it remains the closest thing to a purely free economy that we can identify in the modern world.

On the internet, the beautiful aspects of human nature manifest themselves, and we see individuals and companies maximizing their talents and resources for reasons of profit, pleasure, altruism, and mere progress in itself. Given that the government neither inhibits the activities of the internet nor props up or favors any particular actors or individuals, perhaps we are witnessing the closest thing to a free market that man has ever witnessed. . .

So here we are in a worldwide web that connects people from all parts of the world, allowing them to exchange whatever they want with one another. It is the essence of a free market: voluntary exchange. There is no use of force or coercion on the internet. No higher authority effectively controls or dictates the way that we spend our time online or the activities that we partake in. . .

Arguably, the human race has seen more progress and innovation through the use of the internet in the past 20 years than through the use of any innovation known in the history of mankind. As we reflect back over the last 20 years, we see thousands of amazing success stories. We see entrepreneurs from all different economic backgrounds and classes making full use of their skills, ideas, and passions. We read about success stories such as Facebook and Google, where very young people have been able to generate massive wealth while providing a cheap, convenient, and valuable new tool for everyone across the globe to enjoy. This is the beauty of a system free from government intervention. . .

Sure enough, various actors in DC are now lobbying to regulate the internet. In April 2009, AP began to publicize a widespread attack on Google — arguably the most successful company and widely enjoyed technology of the past 10 years. As more and more information-providing companies see their revenues dwindle as a result of better and more convenient information being provided by competitors on the internet, we can be certain that a greater number of companies will congregate in DC to propose greater regulation.

Let us hope our government is stern enough to defend the Constitution as it was written with the intent of dealing with this type of dilemma. The first amendment, freedom of the press, was most strongly emphasized by Thomas Jefferson. He stated, "Where the press is free and every man able to read, all is safe."

The internet is a model of the free market. It represents all of the aspects of capitalism that we cannot witness in our current offline world due to the high level of government intervention that pervades our society. Online, we see widespread competition, low barriers to entry, voluntary exchange, rapid technological advancements, decreased prices, and a flowering of creativity.


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