Now, it is obvious to us that entropy can decrease in some instances, for example, in the process of biological evolution. In the same way, any process of evolution, while showing a definition direction of adaptation, can see local or temporary decreases in adaptation due to changes in its environment, like the meteor discussed before. Man-based systems behave superficially differently from biological evolution and other natural systems. Not, of course, that this guidance is necessary rational , or even conscious , but it is necessarily there. The perfect example of man-based evolution is the economy.
Free markets are eminently evolutionary systems.
When we say free market , we mean that this process exists in a context of freedom, which therefore entails the protection of property and action rights, for one. This context in itself is also evolutionary, that is, politics is an evolutionary sphere in itself, as we can observe from history. You may have noted how this process is similar to biological evolution, where natural selection tends to close the gap between non-adaptation and adaptation thru survival of the fittest, while mutations give more genetic stock for selection to work on, and environmental conditions change the context in which the system evolves. The same thing is true here. The discovery process brings changes in the context of this competition, which provokes disequilibrum for a certain time, due to market inertia.