Hobbit@Law

Looking carefully at that which is unseen.

Daily Archives: December 5, 2011

Thinking about: The free market

Looking at the current economic mess, it’s now become fashionable to claim that the free market doesn’t work. But doing so is no different than taking the steering wheel and brakes off of a car, then claiming that cars don’t work as it goes plunging at full speed over a cliff. Markets only work if you don’t screw with their processes, and the market, in order to work, is going to have to involve pain for bad decisions. Backstopping investors with tax dollars, or cutting huge checks out of the Treasury to “to big to fail” institutions is no different than taking the brakes and steering off of a car careening toward a cliff. That’s not the “free market,” that’s “crony capitalism,” and attempting to conflate the two so as to tarnish the one system that can potentially produce the maximum of human weal is madness.

Or a concerted effort by those who do not like the idea of human weal – for other humans, anyway.