Common and extreme cases are pollution of the type we see on Nigeria where global conglomerates are "allowed" to ignore safety standards by a corrupt government. Eg:
Gangster Capitalism: The United States and the Globalization of Organized Crime
Ed: and another example of problematic incetives is allowing power production for profit. We generally agree we need to use less energy, and yet have businesses that make more money when they can sell more energy... Sure, it might be a benefit to relatively sell more "green" energy - but really, the ideal energy company would make the most money when it got its customers to buy less energy....
Centralised power generally means a departure from direct democracy, and that's one reason why I'm not a fan of the EU.
For a great view into why a regulated market might just be better than an unregulated one, have read of:
"Gangster Capitalism: The United States and the Globalization of Organized Crime"
The fact that other industries manage to (both literally and figuratively) throw their own workers under the bus, should give extra pause in legalizing work that have strong associations to abuse, degradation and harm.
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