Except that that story has so many holes it's ridiculous:
a) yes, supply meets demand, but basic high-school economics also teaches us about elastic and inelastic supply and demand. If people want to use an economic theory to justify their political ideas, they can't just pick the bits they like. They must use the whole theory. Basically, anything that's essential for survival has inelastic demand, whereas luxury goods, i.e.: the optional ones, have elastic demand. The most negotiating power always lies on the side that has the most flexibility.
Elasticity can not be manipulated by governments. A government can't make resources out of thin air, and can't reduce people's need for things through force. The only thing that can change elasticity is economic/technological progress. All government can do is force prices down by using everyone else's money, until either everyone runs out of money, or until the resource is depleted. Take oil for example. USA is taking shittons of money from people to keep oil prices down (which they do through taxation and massive military spending). As a result, USA is hugely in debt, oil is quickly running out, and we have barely scratched the surface on alternative energy and transportation. In the long run, goods that are inelastic have the highest incentive for competing alternatives and substitutes. If your competitor, using established technology, is severely affected by changes in supply, causing him to drastically raise prices any time there is even a small shortage (say, he's selling imported water in a desert region), then he is highly succeptible to any competitor that comes up with a more efficient alternative, which will kill his business instantly (for example, with a cheap reverse-osmosis filter that can extract water from any liquid, including human waste, and can be powered by wind). We have already seen this with food - another inelastic good - where farmers who could demand premiums for their produce were supplanted by industreal farming, which turned farm produce into a market taker (i.e. farmers are forced to take whatever is offered for their food, since anyone else can do what they do). University economics trumps your high-school economics
a1) "voluntary" is emotive propaganda used by the likes of Stefan Molyneux to make it sound like free trade is somehow morally superior to alternatives. (And he doesn't even discuss the issues, he diverts attention away from the problems of internal pressures that are built into each trade, and starts talking about about external violence instead, which is an unrelated topic.)
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In the second case [life-saving surgery], the buyer's negotiating position is extremely weak. It's not voluntary for them at all. Therefore, the service involving a just few hours of work from a few skilled artisans using relatively primitive tools is likely to be priced many times higher than a TV set, even though the TV set almost certainly cost more in terms of total resources. None of this can be blamed on governments interfering. It's just simple economics. Free trade can sometimes be evil and coercive and non-voluntary.
If you know high-school economics, you would know that the thing that is priced many times higher will attract many more people to pursue that business, and as more people enter the market, competition will drive prices down AND create many more choices, and thus negotiating power. The reason surgery is so much more expensive than TVs right now is pretty much government. Plus, again, look at the available options: Let economics decide, or force it to change. The only ways to forcefully resolve the issue of
internal pressure, such as need for life-threatening surgery for the person who needs it, is for that person to steal the money or service (such as threaten the doctor's family if he doesn't do it for free), or to have a government steal from everyone else to pay for this surgery. But then you have TWO negative consequences. The first is that the surgeon has no reason to reduce prices, since everyone always gets paid what they ask for, and the second (which I believe is much worse) is that no one who needs this surgery feels the consequences of their lack of responsibility. Why should they bother to work harder (or better yet smarter), earn more, and save up for emergencies, if they will be taken care of every time an emergency comes up? Yes, in a voluntary society we will have people duying because they can't afford life-saving services, but they will be warnings for others about being responsible with your life, and be the people who were so irresponsible that their loss will not be important anyway. Anyone who is respoonsible and important enough will likely be able to raise money by borrowing or through charity.
b) Competition can be very useful to drive evolution. But in terms of raw efficiency, it's probably far more efficient at any given moment for businesses to merge and gain economies of scale, rather than staying separate. But if there are no competitors, there's no risk of one of those competitors driving you out of business, so why waste so much effort innovating? Therefore the R&D budget gets cut. This has been discussed before: free markets trend toward monopolies. Monopolies get lazy and non-innovative. They also sometimes get weird psychoses from their controllers who are paranoid about losing their steady income stream.
Sounds like high-school economics again. Monopolies are always short-lived, exactly for that reason. They get lazy and non-innovative, and ket killed off by much more flexible and faster newer innovators. For example, Kodak had a digital camera prototype I think in the 70's or 80's, but they scoffed at it because that wasn't their monopoly business (they were in photochemicals and film), and now Kodak is essentially dead. Microsoft, the biggest most powerful monopoly of the 90's and 2000's, is duying as PCs become less relevant. General Motors nearly got wiped out because they couldn't change and switch their business as fast as Toyota and Honda to accomodate changing tastes in cars (continuing to sell SUVs as gas prices went from $1.50 to $3.50). Let them merge and become more efficient. That's good for us, because their products will continue to be cheaper while they sell them, and because it'll be easier for innovators to take them out. And if they gouge prices due to monopoly power, all the more incentive for someone else to step in and kill them.
c) Non-aggression principle is just crap. Sure it's a nice sentiment and everything, but if mankind could operate on a simplistic golden rule instead of chaotic systems of laws, then it surely would.
Non-aggression does not exclude a chaotic system of laws. It is simply the basis for those laws. It's the same laws that are being used now in civil courts, and in trans-national business law (a new body of law being developed by businesses independently of government, for use by corporations that do not have a specific country they are based out of). All non-aggression principle says, really, is that laws should not allow someone to take someone else's stuff "legally" and without recourse.
So, in summary, you're complaining about Eric Li's description of Democracy, but you seem to be doing so while standing behind some flavour of Libertarian story which has even more holes. Therefore: pot kettle black, and his advice applies to you too that you should work on improving your own system first.
My system is not perfect, and I am still exploring the possibilities. But it's not as full of holes as you'd like to believe. Plus my overall point was not who's system was full of flaws, but the weird quirk that despite mentioning "individual sovereignty," he still ended up being stuck in the mindset of "someone must control us." Just as ZGM/RBE proponents advocate for total freedom from needs and wants, while still promoting "someone must control us."