Practice could be closer to theory, to the benfit of society as a whole. Except the powerful who dominate our supposed representatives do anything and everything to keep their power. Such is human nature. It is a failing of capitalism and communism alike. If you work from such assumptions, no wonder you are a libertarian capitalist.
Economic efficiency can mean high unemployment or diminished services.
Economic rationlism can mean war or destruction of the environment. Our resource-base is limited. Resources should be husbanded, not squandered. Plus, the free-market doesn't exist anywhere in the world. If one is created, it is quickly swallowed by the mildly successful becoming big enough to monopolise.