A free market will bring ring everyone together and eliminate our social dilemmas. Once people get used to interacting with people on an everyday basis they will eventually become closer. I believe that once we start to love each other like we should then the world will be a better place. This includes our market systems.
In a free market everyone is trying to make themselves better off, but in the process they make everyone around them better off as well. Take for example a food manufacturer. The owners of the food manufacturer will want to keep their production cost as low as possible so that they can sell the most units of food and make the most profit. In order to sell as much as they can they must price their product lower than there competitor's. There competitor will in turn cut there prices so that they can sell more. And by the companies trying to sell the most they end up decreasing the price of the food until it cannot be sold for any cheaper. Which keeps food prices low, and combats world hunger.
Only the businesses most important to the people would flourish as the people are those who support the businesses via purchasing of services, goods, etc.
Example 1: There has been controversies over bakeries which refuse to make cakes for those having non-traditional marriages. Allow them, they shouldn't be banned, however, it is unlikely that in the current era, that these businesses will thrive. Those who sell cakes to all people are more likely to get more business and support. Everybody gets their cake and can eat it too.
Example 2: In a free market where drugs can be legally purchased and sold, how well would the gangs operate? Mafias fell greatly out of favor once prohibition was lifted as businesses could deliver higher quality products for a cheaper price. Businesses can handle the selling of drugs as disputes among dealers can be dealt with in courts as opposed to shoot-outs and turf wars. If you want to take it even further, place a small excise tax on these drugs sold in the free market and put these towards funding private rehabilitation programs. The current solution to the war on drugs and users has been a failure and a very expensive one to the public.
I feel that a free market system is ideal to avoid government intervention that can lead to monopolization in markets and unjust laws that govern price setting. This would avoid social dilemmas in which the people disagree with the motives of private interests that are being supported by the government which allows for an unfairly controlled market.
Yes, I think that a free market system can solve our social dilemmas, because it gives us the wealth to do extra things. If we are all poor, we do not have the money to do charity. With extra money, we can give some to the poor who need it more than we do.
Due to the human nature with a completely free market all social dilemmas would go to the trash. Everyone would adopt Darwins Thoery of social survival of the fittest leaving a huge gap between the upper class and lower class with a low population middle class. We need at least some government intervention such as minimum wage, labor laws, and such to keep business responsible for being true human beings. Before this government intervention during the 19 century when factories paid immigrants nothing and every social dilemma imaginable come to the forefront. In conclusion, due to our human nature without any government intervention a completely free market system cannot work at all much less solve any social dilemmas.
Countries that practice Scandinavian-style social democracy (or democratic socialism, depending on definition) have better results for all of society - lower crime rates and recidivism, higher employment, longer lives, and greater happiness.
Free markets are not magical fairies capable of solving complex social issues and often exacerbate those issues - privatized prisons have not left America safer, but rather with a new generation of well-trained criminals.
I do not believe a free market system can solve our social dilemmas. Capitalism bodes on free markets and it has turned into a game of who is richer? It has left a large population in poverty. How does that solve our social dilemmas? Free markets allow people to take advantage of one another. It creates social dilemmas, it doesn't solve them.