If you read a lot of the original liberal thought behind the "free market", it actually spells out something probably more aptly named "competitive market". A "free" as in "you can do whatever you want" market does not provide the same theoretical benefits as a competitive market (e.g. you can make models/derive theorems that the long run profits go to 0 due to competition, etc.)
Even the wikipedia page for "Free market" today includes:
"For classical economists such as Adam Smith, the term free market refers to a market free from all forms of economic privilege, monopolies and artificial scarcities.[2]"
I believe that interpretation can come from the following line in Wealth of Nations:
"People of the same trade seldom meet together even for merriment or diversion, but the conversation ends in a conspiracy against the publick [sic], or in some contrivance to raise prices."
> I understand it from a socialist point of view though.
I hope this provides further understanding from a liberal-capitalist point of view :)
If you read a lot of the original liberal thought behind the "free market", it actually spells out something probably more aptly named "competitive market". A "free" as in "you can do whatever you want" market does not provide the same theoretical benefits as a competitive market (e.g. you can make models/derive theorems that the long run profits go to 0 due to competition, etc.)
Even the wikipedia page for "Free market" today includes:
"For classical economists such as Adam Smith, the term free market refers to a market free from all forms of economic privilege, monopolies and artificial scarcities.[2]"
I believe that interpretation can come from the following line in Wealth of Nations:
"People of the same trade seldom meet together even for merriment or diversion, but the conversation ends in a conspiracy against the publick [sic], or in some contrivance to raise prices."
> I understand it from a socialist point of view though.
I hope this provides further understanding from a liberal-capitalist point of view :)