The Uses, and Abuses, of the Term ‘Markets’

When you come down to it, the word market is a negation.  It is a word to be applied to the context of any transaction so long as that transaction is not directly dictated by the state.  The word has no content of its own because it is defined simple, and for reasons of politics, by what it is not.  The market is nonstate, and thus it can do everything the state can do with none of the procedures or rules or limitations.  It is a cosmic and ethereal space, a disembodied decision maker–a Maxwell’s Demon–that, somehow and without effort, balances and reflects the preferences of everyone participating in economic decisions.  It is a magic dance hall where Supply meets Demand, flirts and courts; a magic bedroom where the fraternal twins Quantity and Price are conceived.  It can be these things precisely because it is nothing.

Because the word lacks any observable, regular, consistent meaning, marvelous powers can be assigned to it.

James K. Galbraith, The Predator State