Steve's barking at the myth of a free market.

The reality of a free market is a myth.
Throughout history man has visioned various Utopian societies, whenever man has tried to put his theory in to practice, members of those societies have gone away disillusioned.

Let me start off by say that there has never been a truly free market.
Most humans have it in their DNA to cheat. To gain advantage over it's rival, a business would and does create a system that  limits the funds for it's rivals. Cash rich companies sell a product at a loss there by stifling competition.
Trying to gain monopolies is only natural, and with no competition the seller sets the price.
During Prohibition the United States had a glance at the free market  for liquor and guess what happened, various gangs sprang up and the free market in liquar died. In the present day one can look at the drug trade, gangs have virtual monopolies in variose areas of the country.

The myth that a totally free market system creates innovation. When a person looks at that statement from a distance one can shake his head in agreement. It's defiantly true in a sterile world, one needs to keep improving to be competitive, but if one is in a non competitive position innovation  is squashed.
One can state well in a free market they'll always be competition, Only if companies can prove they can make a a profit or they can't find funding.
The first thing to go when profits aren't right is R and D and with it goes innovation.
In a free market new companies are formed all the time that are innovative.
New companies are formed it's true, but only if they can get the cash for their start up, hoping that there isn't collusion between existing companies and banks or with investors.

Did the monopolies of the early 20th century create more and better businesses or was America's economy on the verge of malaise? Yes American businesses and the economy was on the verge of malaise.
Did monopolies make for a freer market? No
Did the break up of the monopolies make for a freer market? Yes.
Those in America who shout that the politicians should have left businesses alone are in reality anti free marketers.

As bad as government is some times, with it's self-righteous bureaucrats, creates a freer market then those free market advocates would.