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The market is very good at allocating resources, setting prices, and meeting demand. Countries with freer economies like Switzerland and Hong Kong have higher
by pitaj 8y ago
The market is very good at allocating resources, setting prices, and meeting demand.
Countries with freer economies like Switzerland and Hong Kong have higher standard of living on average. Countries which free up their economies have higher relative standards of living after doing so. Countries which oppress their economies have lower relative standards of living after doing so. (By relative, I mean relative to the growth rates of neighboring countries and before the changes, as standards of living rarely decrease absolutely).
- linkregister 8y agoThat said, those economies have some weird aspects to them. Both are small states. Both have much lower proportions of their population in poverty than larger states. Both are centers of global commerce. In general I agree with you that markets allocate resources far better than the most earnest central authorities. That said, market failures often happen without regulation from governments.