A Patron of Economic Update asks: "In college many years ago I took a couple introductory courses in economics. There I learned that a free market was a market with perfect competition where buyers and sellers could freely enter the competition. From this definition, it followed that a free market would set the price on a good so that supply equaled demand. And there was enough of a discussion on this definition to conclude that a monopoly or oligopoly could not exist in a free market; moreover it was generally understood that government oversight and regulation was needed to maintain a free market. Today, however a free market has been re-defined as a market without government interference of any sort. My question then is how economics is taught today; it would seem that with this new definition of a free market, just as with perfect competition, any significance of the supply and demand curve intersection would be irrelevant."
This is Professor Richard Wolff's video response.
Ask Prof Wolff is a Democracy At Work production.
We are committed to providing these videos to you free of ads. Please consider supporting us with a monthly donation. Recurring gifts are especially appreciated because they enable us to plan for the future. Learn how we thank our monthly donors.
Do you have a question for Prof Wolff? With the Ask Prof Wolff series we hope to thank the [email protected] donors that ensure we can keep [email protected] shows free to everyone, while making video responses public so that everyone may benefit from the question and response. Become a monthly supporter of [email protected] and submit your question today!
Follow us ONLINE:
“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”
Check out all of [email protected]’s books: "The Sickness is the System," "Understanding Socialism," by Richard D. Wolff, and “Stuck Nation” by Bob Hennelly at http://www.lulu.com/spotlight/democracyatwork