The conventional (and conservative) wisdom is that free markets needs inequality to create incentives for ‘wealth creators’. Chris Dillow, one of my favourite bloggers, argues instead that free markets need equality. As he puts it:
If you are serious about wanting free markets you must put in place the conditions which are necessary for them – namely, greater bargaining power for tenants, customers and workers. This requires not just strong anti-monopoly policies but also policies such as a high citizens income, full employment and mass house-building.
In short, free markets require egalitarian policies. Free marketeers who don’t support these are not the friends of freedom at all, but are merely shills for exploiters.
(21 June, 2017)