Associations are “governments in miniature”, usually complete with rules, regulations, laws, by-laws, judges, rulings, meetings, etc.

You’re not seeing Associations as governing institutions, which is what they are.

 

They are “governments in miniature”, usually complete with rules, regulations, laws, by-laws, judges, rulings, meetings, etc.

For example, if there is a single Association for all “Microstock Racing”, that is their government.

They don’t have competition. It’s not “free market” at that point because those who swear to upload to the rules of the association are bound by them.

The equivalent in private enterprise would be a single corporation that runs everything within its purview.

Let’s say the only software company was Microsoft. There was no competition. At that point, Microsoft becomes a Government.

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To expand into sets of public corporations, where there *is* “free market” competition, you have the stock market.

Some people believe the stock market is a self-regulation institution, rationally balancing itself via the magic hand (or something).

But all you need to do is actively invest for a short time before you realized the market is emotional, not rational. It is not self-regulating or have its own load balancing: it’s driven by news, hope and fear. Those are even embedded in the algorithms used by trading companies. It’s built-into the growth-assumption of the fundamentals!

But there’s lots of myths about the market that people are taught that encourage them to dive in. They follow waves, believing its a rational system that self-regulates, self-balances, etc not seeing that there are many invisible hands that are right in front of their face, none of which is Adam Smith’s.

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