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. It simply states that if consumers choose what
to buy and producers choose what to sell and how to produce it, the
market settles on a product distribution and prices.
Lately, many people I know have argued that "free markets" mean
something more. They see markets as ethically right or ethically moral,
meaning pursuit of profit always somehow leads to a greater good.
http://www.dailykos.com/story/2014/02/03/1271430/-25-Images-of-Markets-Regulating-Themselves?detail=email
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