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Originalform
Political Economy & Social Systems
Article 3.2

The Myth of Neutral Markets

Markets are often treated as natural and neutral, but they are built inside legal, political, and cultural structures.

1 mins readPublished: March 30, 2026

Markets do not appear from nowhere

The language of the market is often presented as if it describes nature:

  • prices are signals
  • incentives are neutral
  • outcomes reflect merit

But markets are always built on prior arrangements:

  • property law
  • contract enforcement
  • state violence
  • infrastructure
  • cultural norms

Without those, "the market" is just an abstraction.

Why neutrality is convenient

Calling markets neutral lets power disappear from view.

If an outcome looks unfair, the story becomes:

  • demand decided
  • efficiency required it
  • the system merely reflected preference

That framing hides who designed the rules under which those preferences became legible in the first place.

The deeper problem

A market can be efficient inside a system that is morally incoherent.

It can allocate resources elegantly while:

  • intensifying precarity
  • rewarding extraction
  • eroding solidarity
  • pricing basic needs beyond reach

Efficiency is not the same as justice.

Better questions

Instead of asking only whether markets are free, ask:

  • free for whom?
  • structured by whom?
  • optimized for what?
  • disciplined by which institutions?

A serious economic analysis begins when neutrality stops being assumed.

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