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If you think the market is giving a wrong price or structural issues are not optimizing the right thing, the correct action is to fix those structural issues, n
by imgabe 6y ago
If you think the market is giving a wrong price or structural issues are not optimizing the right thing, the correct action is to fix those structural issues, not to try and fix prices by fiat. The market will continue to operate around that and distort elsewhere, usually to the detriment of everyone involved.
It is not an ideology, it is a fact of how markets operate. If something is in great supply and low demand, the price will be low, and vice versa. This is an observable, objective statement about the nature of the world. Having an ideology that makes you wish the price were something else, doesn't change the reality of how prices of things are determined.
The "structural issues" are usually the result of artificial distortions on the supply or the demand that come from the result of well-meaning but misguided efforts to get the "right" price according to one side of the transaction.