Now I can understand why some people believe in the government’s message as to why capitalism fails, because for them this is what they’ve been taught in school, by their parents, and their peers. However, if you’ve ever played an MMORPG called “Eve Online”, I find it hard for one to make the notion of believing in centralized economics. That belief would be an oxymoron.
Eve Online has one (if not) the best MMO economics I’ve ever experienced. Sure it’s a video game, but there are hundreds of thousands of players who all share same goals, needs, and demand that a real economy has but without the intervention of a government. Eve online’s economy is about as free market as one can get, much freer than today’s global markets.
Players themselves decide dictate the laws of supply and demand but without the regulatory laws of government. Yet, the market functions fine. Over the course of its 12 year history Eve online economy has not experience neither inflation nor deflation. For a game such as Eve online, it is critical for the value of ISK to be stable otherwise what may occur is extreme levels of hoarding assets and hyperinflation.
Think about it, if you were an Eve online player who saw that the value of ISK (Eve online’s currency) dropping every week what would you do? Probably buy up as much assets you can today and sell them next week at a higher price. Or perhaps you’d buy all a large stock of ships for present and future use or even trade with goods and not with ISK. Either way, the economy will eventually at some point collapse.
So is Eve online proof that free markets work? Can the market decide the needs and demands of goods better than the government? I’d say yes to both answers. Eve Online is a free market economy, there is no centralized planning; just thousands of players all participating in the market and for 12 years it has worked very successfully.
Yes, it’s a video game with a market simulator. But like with all theories, even scientific ones, simulations are always used to test and prove a theory’s validity. Eve Online is a simulator that proves that the free market works. But if you need further proof I’d suggest looking into the U.S. Economic history from 1865-1910, a time before America's economy was centralized by the government. An economic period that was known as the Gilded Age.