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Politics : American Presidential Politics and foreign affairs
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To: TimF who wrote (38589)11/13/2009 6:14:22 PM
From: DuckTapeSunroof  Read Replies (1) of 71588
 
Re: The point is that "government failure" is common.

I'm sorry.

Although I completely agree with you that failures of government (and 'government failure') are extremely COMMON... that is a *different point* from the issue of Adam Smith's famous theory about the efficiency of markets ("The Invisible Hand"), which theory relies upon certain predicate assumptions... not the least of which (and the mathematical proof of same was worth a Nobel Prize in Economics just a few years back) is the assumption that market participants have 'equal knowledge' about the facts in existence in the markets....

Like Churchill's famous dictum that "Democracy is the worst form of government... except for all the others!", I also have no problem thoroughly believing that Capitalism is the worst economic form for ordering economies... EXCEPT for all the others!

But that does not mean that it is ever and anon *flawless*, nor that it cannot, (as history demonstrates), have detectable and predictable disadvantages... which wise people might want to mitigate or guard against.

Such as the "Black Swan" appearances of "Minsky Moments".

Forewarned is forearmed.

If you build a village at the base of a mountain known to have occasional landslides and avalanches --- and you do not take actions to mitigate the very real dangers, even though it may be that those dangers are relatively few and far between --- then you are not a wise steward of either your community's best interests, or or your own.
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