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I think 2008+ if anything shows that free market economies indeed are resilient to threats even in the worst times.

Al-Khwarizmi 10mo ago
So, there are threats and the economic data is fine (like now) -> the free market works great because it works fine in spite of the threats. There are threats, the economic data falls into the gutter, but eventually recovers (not without real and quite lasting negative consequences for many people) -> the free market works great because hey, if you held SP500 you were still fine in the long run. It's like a religion. If things go well it's thanks to God, if things go wrong maybe God is testing or punishing you but all will eventually be fine (in the worst case, after death). The free market is a lot like a god for its followers.
dgb23 10mo ago
The financial markets collapsed in 2007/2008 and survived because of government intervention.
- epolanski 10mo ago
  I well remember what happened in 2008 (caused by government's deregulation by the way, not "technocratic managerialist", whatever it means). Despite the severity of what happened, jobs rapidly recovered and were around the same pre-financial crisis levels (and well above US averages) in a matter of few years and workers earnings were at or above 2008 levels (inflation adjusted) by 2016. All in all, as severe 2008 was, I don't see how free market economy made it more, rather than less severe. It's at best an opinion.
  - dgb23 10mo ago
    "Caused by government deregulation" could also be phrased as "not prevented by regulation, while caused by financial markets". The rest of the market recovered quickly once the government re-arranged debt and prevented a full collapse. But the lesson was that private debt was accumulating too quickly on a shaky basis, catalyzed by financial markets making the issue orders of magnitudes worse. Rapid private debt accumulation is still not discussed enough today for my taste.

So, there are threats and the economic data is fine (like now) -> the free market works great because it works fine in spite of the threats. There are threats, the economic data falls into the gutter, but eventually recovers (not without real and quite lasting negative consequences for many people) -> the free market works great because hey, if you held SP500 you were still fine in the long run. It's like a religion. If things go well it's thanks to God, if things go wrong maybe God is testing or punishing you but all will eventually be fine (in the worst case, after death). The free market is a lot like a god for its followers.

dgb23 10mo ago

The financial markets collapsed in 2007/2008 and survived because of government intervention.

epolanski 10mo ago
I well remember what happened in 2008 (caused by government's deregulation by the way, not "technocratic managerialist", whatever it means). Despite the severity of what happened, jobs rapidly recovered and were around the same pre-financial crisis levels (and well above US averages) in a matter of few years and workers earnings were at or above 2008 levels (inflation adjusted) by 2016. All in all, as severe 2008 was, I don't see how free market economy made it more, rather than less severe. It's at best an opinion.
- dgb23 10mo ago
  "Caused by government deregulation" could also be phrased as "not prevented by regulation, while caused by financial markets". The rest of the market recovered quickly once the government re-arranged debt and prevented a full collapse. But the lesson was that private debt was accumulating too quickly on a shaky basis, catalyzed by financial markets making the issue orders of magnitudes worse. Rapid private debt accumulation is still not discussed enough today for my taste.