@Holy @TC
I am a staunch defender of free market economics, however I do not think Unions or Government involvement (Taxs and only Taxs) are in opposition to a Free Market. Unions are merely a group of individual actors who sell labor gathering together to negotiate efficiently with those who need to purchase labor. Labor purchasers can choose to negotiate with Unions or not, but eventually Unions will likely replace non-union individuals. Through negotiations a range of payment between the maximum an employer is willing to pay and a minimum an employee is willing to work for will be reached naturally. That all looks like free market to me.
Regarding taxes, firms create positive and negative externalities, which are cost's or benefits borne by society. Society is represented by a democratically ellected government. In the case of negative externalities, society(government) may decide that in order to be recompensed for the cost they have borne to tax the firm. The firm will likely correct its practices to avoid this cost. Still free market to me.
In the case of positive externalities, society(government) may decide that given the benefit of what the firm is producing, to little is being produced in the eyes of society, thus they will subsidize the firm to lower the price, or simple outright purchase from the firm. As a result either price decreases increasing quantity demanded, or demand outright increases, meaning that the firm will produce more. Also still free market to me.
I assume you both undertsood all the terms I used, let me know if I said anything unclear. Thoughts?