alt Hacker News> "free market" is often used as a dogma against companies that are actively harmful to society
This is a predominantly America-specific piece of propaganda, and it's pretty recent.
Adam Smith's ideas are primarily arguments against mercantilism (e.g. things like using tariffs to wield self-interested state power), something he showed to be against the common good. The "invisible hand" concept is used to show how self-interested action can, under conditions of *competitive markets*, lead to unintentional alignment with the common good.
Obviously that's a significant departure from the way it's commonly used today, where Thiel's book has influenced so many entrepreneurs into believing Monopolies are Good.
But the history of this is very Cold War-influenced, where "free markets" were politically positioned as alternatives to the USSR's "planned economy", and slowly pushed to depart further and further from Adam Smith's original argument about moral philosophy.
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> arguments against mercantilism
It has been funny to watch the rise of "China is beating us" rhetoric against the steady backdrop of "mercantilism is obsolete/bad" dogma, because the elephant in the room is that China has been running a textbook mercantilist playbook.
> Thiel's book has influenced so many entrepreneurs into believing Monopolies are Good.
Haven't read his book, but the idea that monopolies are good isn't typically made in a vacuum, it's made relative to alternatives, most often "ham-fisted government intervention". It's easier to take down a badly behaving monopoly than to change government, so believing monopolies are better than the alternatives seems like a decent heuristic.
Economic behavior is inherently game theoretic - agents take various actions and get some positive/negative reward as a result. Whether an agent's reward is positive or negative and of what magnitude, depends on the strategies employed by all agents. If some agents adopt new strategies, the reward calculus for everyone involved can completely change [1].
Over the past few centuries, countless new economic structures and strategies have been discovered and practiced. The rewards for the same action today and in the past can be completely different due to this.
So to me, if someone claimed more than a few decades ago that certain economic strategies and structures are good or bad, its simply not worth listening to them, unless someone reconfirms that the old finding still holds with the latest range of strategies. In that case, the credit and citation goes to that new someone, not the ghosts of the past.
[1] A good interactive demo https://ncase.me/trust/