3 ms·
This is a terse comment with not a lot of context, but I think it is misleading to say the "market is broken" as it suggests that the market mechanism is at fau
by gwright 7y ago
This is a terse comment with not a lot of context, but I think it is misleading to say the "market is broken" as it suggests that the market mechanism is at fault but in reading these comments it sounds like the government regulations are the source of the problem.
- odiroot 7y agoSorry for the shortcut. You're correct and that's basically my impression, the market is bludgeoned by illogical policies.
- seunosewa 7y agoA market can be broken through the actions of private actors too. Monopolies and other anti-competitive organizations, criminals, poorly educated market participants, externalities not properly accounted for, etc can “break” a market. In this case a large number of voters seem to believe that rents should not increase even if demand vastly outstrips supply, forcing the government to create short-sighted policies to try to appease them.
- gwright 7y agoSure markets can be affected by private actors, but I still think "broken" isn't a helpful way to think about market conditions. High and low prices are examples of the market working exactly as needed by signaling that there is un-met demand (high prices) or mis-allocated resources (low prices).