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> The other problem is that free markets are self correcting. The use of the term "correcting" gives the free market way too much credit. Especially given that
by velcrovan 8y ago
> The other problem is that free markets are self correcting.
The use of the term "correcting" gives the free market way too much credit. Especially given that, as you note, there is no objective mechanical principle at work besides mass hysteria.
It would be better simply to say that _free markets fluctuate a lot_.
- pbhjpbhj 8y agoI think they do self-correct, the cost being devastation of people and resources. Over price housing and you get more homeless. A self-correction in a free market would be violent possession by the homeless; or the wages of murder squads increasing; or increase in thefts/frauds in order to afford rent. Release harmful effluent from your factory and you might kill your customers. So, eventually you'll have noone to sell to. Paying low wages, eventually all the people will either rebel or die and you'll have to increase wages or find a different way to steal value from others. See, self-correcting.
- everdev 8y agoYep. Free markets aren't perfect, just self-correcting. Everyone would need perfect information for them to be perfect and I'm not sure that's a realistic goal.