The market, non-coercive that is, is the social system of division of labor.  The coercive market is anti-social.  There may be division of labor depending on when the coercion began, but progress cannot happen.  Progress means individuals are acting with their own property.  Every action taken with private property aims at the satisfaction of other people’s needs.  As the late great Walter Williams used to say: we can think of money as tickets for serving your fellow man.  Yes, I know, some get their money through coercive means.

On the non-coercive market, every individual is an ends and means.  An ultimate ends for oneself and a means for other individuals to get what they want.  This is guided by the non-coercive market.  The market is just a process: not a thing, place, collective entity, or location.  The non-coercive market, everyone is free and no one is subject to violence by another, including the social apparatus of coercion.  In this way, everyone cooperates with everyone, excluding a few.

The market process will change based on the valuations of the individuals participating.  The subjective valuation will send signals to adjust supply of goods, in turn, prices.  Prices are determined by supply and demand—the subjective valuations of individuals.  There is nothing mythical about this, no omniscient being determines what individuals’ value.  Every action is an action by an individual.  Each individual adjusts to the other. This is a magnificent process, and it’s not determined by popular vote.  Each buying or non-buying individuals has a say in: what is produced, how much, what quality, and what price.

The non-coercive market is capitalism.  The coercive market is statism.  That is a fact, not an opinion.  Production is either directed by individuals or bureaucrats.  There’s no way around that.  On the non-coercive market, individuals have to convince other individuals to give them money.  If they don’t, they will go out of business.  If they succeed, they will stay in business.  Profits are terrific, that means that the individual or group of individuals are supplying other individuals with what they want.  In other words, they are receiving tickets for serving their fellow man.

In the coercive market, that is the statist market.  Production is directed by bureaucrats.  We cannot differentiate a lot or a little.  It disrupts the process regardless.  A coercive business, agency, etc., compel individuals to hand over their money.  If the coercive firm is becoming self-sufficient, making profits, it will receive a lower budget next year.  If it is not self-sufficient, suffering losses, it will receive a larger budget next year.  There is no incentive to serve your fellow man.  Ever larger budgets will be justified.  Thus, the growth of government will never stop.  The market can either be non-coercive or coercive.  The non-coercive market is the free market.  Which do you prefer?

References

Ludwig von Mises; Human Action