SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: skinowski who wrote (91858)12/21/2008 6:09:32 PM
From: Moominoid  Read Replies (1) of 116555
 
I think it's a misunderstanding. "Invisible hand" does not "lead" - it does not exist - it is merely a metaphor for what occurs as *result* of economic activity, whatever it happens to be during a given period.

Well that depends on what you mean by "invisible hand" - the same process - a macro outcome reflecting uncoordinated individual decisions can lead to good or bad outcomes. Excessive pollution is a negative outcome due to the market failure of public goods/external costs - i.e. polluters can impose costs on others. For the free market or "invisible hand" to result in an efficient outcome (where none can be made better off except at the expense of others) such external costs (due to the existence public goods like environmental quality) must not exist. It's one of the many neccessary conditions for the positive invisible hand outcome to occur.

Let's just hope that those "regulators" know their arse from their elbow. Too often, it seems, they simply forge ahead and act on good intentions, all the way remembering to grab more power as they go.

Government failure is just as important as market failure.

or some reason people think that downturns are market failures. They are not - life is cyclical.

Neither I nor most economists I think, think that. Persistent high unemployment though is likely to reflect even market or government failures.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News