Rule of Law in Free Market Society

In a free market society, the rule of law serves as an organizing principle that encourages individuals with power and wealth to abide by the rules rather than behave like bandits. This is because playing by the rules offers them the opportunity to get richer while also ensuring some level of accountability. The rule of law, although it may get distorted by power, is still preferable to an economy governed by genuine bandits who operate outside the boundaries of the law. This argument, originating in the 18th century, remains relevant in the 21st century as it highlights the importance of having powerful individuals constrained by rules that form the foundation of their wealth.