That definitely happens, and there’s even a word for such an entity: a “government” :)

So when free markets don't align with the philosophy then we just redefine words until they do?

I was only being trite.

From memory, a government is a political entity with three distinguishing characteristics:

    * it claims a physical territory
    * it claims a monopoly on the *legitimate* initiation of force
    * it claims the moral right to levy taxes

I was referring to the free market. If the free market creates a government, then you have redefined free market to mean government when it was created by the market forces.