> "free market is always good and government is bad"
This view seems especially American, but it is also a very liberal view (in the philosophical sense, not the somewhat weird partisan sense). Liberalism reconceives the common good, private property, and freedom dramatically. Whereas traditionally, the state is viewed as steward of the common good (that is its essential function), and private property as something instituted for the sake of the common good, liberalism conceives of private property as primary and the common good as something grudgingly ceded from the private good. Freedom is traditionally understood as the ability to do what one ought (the freedom to be what you are by nature, that is, a human being), but liberalism construes it as the ability to do whatever you please. (It's an odd idea. If I happen to want to gouge my eyes out and cut my arms off for no reason, doing so does not make me free. It makes me less free, because now I am less capable of functioning fully as a human being. I am confined and prevented from doing all sorts of good things. Human nature is the yardstick by which freedom is measured.)
What does this all mean? Well, it means government becomes construed as an artificial, even malicious construct that stands in the way of freedom. Certainly corruption exists, but this is not a valid argument against government as such. And besides, without government, something fills the vacuum. The absence of authority isn't freedom, but exposure to power that lacks authority.
So, yeah, free markets are good, as long as freedom (and thus the good) is construed in the traditional, not the liberal sense. That means that government, properly understood, is not an obstacle to free markets, but a sine qua non of truly free markets.