> The idea that "bad behaviour is its own punishment" just isn't very realistic over the short term in which we mostly care.
Extreme laissez-faire / free trade theories are all failing to see that most feedback loops are imperfect and most importantly: slooow. Yeah sure: there will always be some kind of punishment... in long run. But "in the long run, we're all dead". Can we please get a half-decent life some time before that? Thanks.
No extreme and simplistic theory will ever good enough for the real world (and none is ever actually applied for real if you look closer)