In principle they are free market proponents. They clearly advocate free market with a well developed financial markets but have pointed out how free markets never are free. They talk of how the system generally degenerates in to a entry barriers built by incumbents. The set of people who are thriving make special efforts to build barriers for new entrants in various ways.
How new technologies can kill existing Companies and with it the livelihood of many people. This becomes such an emotional issue that Governments ( with their political agenda) have to necessarily support the inferior or less productive companies just to ensure that workers are protected. Protection of this kind and not allowing entry to more productive and better technology Companies could be a big drain. It would be a good idea to compensate the workers with a pension or some kind of social security and close out the low productive units. But the cost of continuation of inferior units is not quantifiable Vis a Vis the human cost of laying off workers .
The authors continually talk of how Capitalism can never thrive without a proper regulatory framework , not to stifle the free market but to make sure that the free market is genuinly free and does not become a captive of incumbents and their machinations to keep the advantage with them.
The authors , with examples make a great case for Financial development and how a very well developed financial system fosters better competition, better products, lifestyle. They make a good case for , how a good financial system which is available to meritorious people , effectively nullifies the incumbents advantages, Their postulate is that a developed and good financial system is a necessity in keeping Capitalism pristine or shall we say free of the clutches of vested interests.
They talk of measures to ensure which includes
Strong social security ( built over the years and not just at the time of severance)
Regulated but not interfered and well developed financial systems and so on on so forth
Need to read once more to fully understand and capture all of what the authors say.
