In evolutionary time economic system developed in less than a nanosecond and formal scientific understanding of anything developed in even less time. None of our understanding is close to perfect. There is no reason to believe our economic system or our understanding of it is perfect. I think that was the point of the Skinowski post, it's not perfect nor can it ever be. The pretension of understanding adds to the problem.
You claim, No "system" designed by the best minds and based on the best theories can ever be more stable than free market capitalism. But I've described how a component of it, non-financial company private debt formation, leads to financial crashes causing deflation, depression or stagnation. And this is a problem exactly how? It would be one thing if those bad -ions only happened under x circumstances, but they seem to happen under all circumstances, at minimum from investments that misread the future, however generated. It would be much easier to make good decisions if one knew how it all turned out, without that foreknowledge there are bound to be mistakes. Buggy whip makers come to mind.
If I understand you correctly you are saying such an outcome is the best we can hope for:The very "instability" of the process when millions of human beings are actively engaged in trying to make the most of their money - is the greatest stability possible. It allows all errors and excesses to self correct with most efficiency - through money and other assets changing hands. If what you've got is "bad" and messing with it without understanding the myriad consequences makes it worse, then yes, "bad" is the best one can hope for.
I don't believe the depression of 1930s, Japanese stagnation the past 25 years, or our stagnation post 2008 is the most efficient outcome neither in human deprivation and lost opportunities, nor in time, if there is an alternative. A big if.
Good post, BTW, very thoughtful.
Thanks. |
