Earlier quoted context omitted.
>humans have all sorts of cognitive biases, how come it's ok to use that fact while at the same time we insist there's some kind of free market? [...] How can the free market work if everyone is so easily affected by suggestion? I'm (genuinely) surprised that someone with your financial background knowledge would write those sentences about "free market". I think you already know that the "free" in "free market" mean…
Well we gotta call it something, kinda like communism and democracy. It means a lot of things to different people, but those things still vaguely refer to similar ideas. I tend not to support stringent definitions on things ("The US is a republic, not a democracy") because basically it ends up being word games. If you look at economics, the idea is that people are rational agents. At least the orthodox idea which peo…
Since the majority of your reply is about justifying more positive government intervention, I've done a poor job explaining what I was talking about.
I already agree with government intervention to limit bad effects of advertising. That's not what my comment was about; instead, I was critiquing your rhetoric.
E.g. the following type of statement : "If people are not truly free thinking, how can we have a free market?!?"
The above statement has a nice poetic symmetry but doesn't actually advance the discussion in a productive way. Let me try more rhetorical examples and hopefully you'll see the same pattern:
Proposal: Facebook should open its social graph as API so users can be free to choose their own 3rd-party client and not be locked in a walled garden. But if users are not so free thinking, how can there be a free choice to choose their own social client?
Proposal: People should be able to freely choose which state or house they want to live in. But if citizens are not aware of hidden influences, and are not perfectly rational agents, and disadvantaged with information asymmetry, can there truly be a free choice to pick a home?
Proposal: People should be free to choose their spouse. But... [same pattern]... because people don't know hidden life influences that had predetermined their eventual mate selection, etc.
What I'm saying is that yes, we can be flexible with definition of "free" -- but that just means we're going down a rabbit hole of philosophical word games. I contend this isn't productive discussion.
If we want to recommend more positive government intervention, we can do that without the "free isn't truly free" philosophy.