If you think the free market should be blamed for our current economic woes, you are on the wrong track. The cause of the crisis is ill-conceived government intervention. FULL ARTICLE by Leland B. Yeager
Source link: http://archive.mises.org/13198/pandemic-the-contagious-crisis/
Pandemic: The Contagious Crisis
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Nobel laureate, Joseph E. Stiglitz, has proven that intervention is necessary in order to have a healthy, functioning market. It’s a good rebuttal against growing market fundamentalism. You can read more by reading his work, “Regulation and the Theory of Market and Government Failure”:
http://www2.gsb.columbia.edu/faculty/jstiglitz/download/papers/2009_Regulation_Theory_Failure.pdf
Here’s the best line in the whole paper is in this laughable paragraph:
“It is clear that our regulatory structure failed. Evidently, there was market failure, but there was also government failure. The primary reason for the government failure was the belief that markets do not fail , that unfettered markets would lead to efficient outcomes, and that government intervention would simply gum up the works. Regulators who did not believe in regulation were appointed, with the expected outcome—they did not do a very good job at regulating.”
lmao
“[G]rowing market fundamentalism”?
Even the Left doesn’t believe in that bogey anymore:
http://www.counterpunch.org/baker04072010.html
From the article:
“The Right has every bit as much interest in government involvement in the economy as progressives. The difference is that conservatives want the government to intervene in ways that redistribute income upward. ”
The Left can’t help but see things as being redistributed. No clue as to the nature of wealth creation.
billy, if the proof is so good (and I did read a few pages of it) why does he state so many conclusions while hardly ever stating the reasons behind his conclusions? Just starting from the first paragraph, he makes claims such as “These individuals must be rational and well informed, operating in competitive market places, with a full range of insurance and credit markets. In the absence of these idealized circumstances, there exist government interventions…”
He throws out the claim without any justification for the claim. And it doesn’t get any better as he goes along. He continues to make these assertions with no backup whatsoever. He says the current crises is due to lack of regulation, but doesn’t explain why he throws out a myriad of other factors. He uses tacky statements about the invisible hand, and constantly talks about exploitation without any explanation of how parties are being exploited as a rule through mutually agreeable transactions.
He talks of optimality, but provides no definition for his use of the term. One could go line by line and and there’s hardly any justification for what he’s going on about. It’s about the worst example of an argument you could possibly present in a place like this.
“Government interventions thus necessarily need to focus on areas where market failures are most pronounced, such as in the health and finance sectors.”
WE KEEP FEEDING THEM OUR BRILLIANT INTERVENTIONS, BUT THE STUPID MARKET KEEPS FAILING.
What do you do when socialism produces a production failure? Add more socialism.
This Mises Daily article took a rather sensible view of the world, and I like it!
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