Difference between revisions of "Myths/markets regulate themselves"
(dkos quote) |
(McNerny; more) |
||
| Line 2: | Line 2: | ||
{{hdr/myth|Business doesn't need government regulation; a truly [[free market]] will regulate itself.}} | {{hdr/myth|Business doesn't need government regulation; a truly [[free market]] will regulate itself.}} | ||
==Myth== | ==Myth== | ||
| + | ===Example=== | ||
| + | * "Saying that regulation works is bullshit. That's the point. You can't regulate better than the market can. Monopolies happened when the government got big. Thank you TR, FDR, and Wilson."<ref name=gplus1 /> | ||
==Reality== | ==Reality== | ||
Markets don't "regulate themselves" in the sense of limiting abuse. When economists talk about how a market "regulates itself," what they mean is that markets reach an equilibrium between supply and demand. This says nothing about whether or not this equilibrium will be a good thing for society.<ref name=dkos1 /> | Markets don't "regulate themselves" in the sense of limiting abuse. When economists talk about how a market "regulates itself," what they mean is that markets reach an equilibrium between supply and demand. This says nothing about whether or not this equilibrium will be a good thing for society.<ref name=dkos1 /> | ||
| + | |||
| + | A marketplace without external regulation deteriorates into a feudal state as the wealthiest collude and use their power to extract more and more wealth from the less-wealthy, resulting in an ever-increasing spiral of wealth concentration accompanied by increasing piracy and squabbling over the remaining wealth as the market's ability to create new wealth deteriorates. | ||
| + | |||
| + | '''Summary''': You can't have a good game without empowered referees. | ||
==Sources / Credits== | ==Sources / Credits== | ||
<references> | <references> | ||
| + | <ref name=gplus1>'''2015-06-01''' [https://plus.google.com/113100417903159704981 Brendan McNerney], comments on [https://plus.google.com/u/0/102282887764745350285/posts/U9pc1DE1B84 this Google+ post]</ref> | ||
<ref name=dkos1>'''2014-02-03''' [http://m.dailykos.com/story/2014/02/03/1271430/-25-Images-of-Markets-Regulating-Themselves 25 Images of Markets "Regulating Themselves"]</ref> | <ref name=dkos1>'''2014-02-03''' [http://m.dailykos.com/story/2014/02/03/1271430/-25-Images-of-Markets-Regulating-Themselves 25 Images of Markets "Regulating Themselves"]</ref> | ||
</references> | </references> | ||
Latest revision as of 21:48, 1 June 2015
| seed article |
|---|
| This article is under construction and should not be used as a reference. |
[[category:myths|Business doesn't need government regulation; a truly free market will regulate itself.]]
| Myth: Business doesn't need government regulation; a truly free market will regulate itself. |
Myth
Example
- "Saying that regulation works is bullshit. That's the point. You can't regulate better than the market can. Monopolies happened when the government got big. Thank you TR, FDR, and Wilson."[1]
Reality
Markets don't "regulate themselves" in the sense of limiting abuse. When economists talk about how a market "regulates itself," what they mean is that markets reach an equilibrium between supply and demand. This says nothing about whether or not this equilibrium will be a good thing for society.[2]
A marketplace without external regulation deteriorates into a feudal state as the wealthiest collude and use their power to extract more and more wealth from the less-wealthy, resulting in an ever-increasing spiral of wealth concentration accompanied by increasing piracy and squabbling over the remaining wealth as the market's ability to create new wealth deteriorates.
Summary: You can't have a good game without empowered referees.
Sources / Credits
- ↑ 2015-06-01 Brendan McNerney, comments on this Google+ post
- ↑ 2014-02-03 25 Images of Markets "Regulating Themselves"