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Can a market regulate itself?
What makes market superior to planned economy is level of INNOVATION because of market dynamism. Bad side is that resources still get invested in sub-optimal areas.
Of course markets do regulate themselves. That is called EMERGENCE.
Bad side [of a market] is that resources still get invested in sub-optimal areas.
We see emergence in nature. Yet, nature is not regulated by rules and laws.Markets tend to regulate rules and laws, not the other way around, friend.
Laws of nature applies to market, but human laws are inferior in maintaining markets, rules, yes even human civilisation.The existence of police is evidence human laws are not universal, because they need force to be maintained.Technocratic solution: Engineer civilisation to make violations physically impossible.
And have regulation deleted insider trading and counterfeiting? If not, they are ineffective firewalls against viruses. We need either better firewall systems, or new economic operative system.
I agree that the current system is irrational but, I don't think I'll ever call a small child 'a unit'.
Quote from: sooyeah on 22/09/2007 13:57:37I agree that the current system is irrational but, I don't think I'll ever call a small child 'a unit'. But the nature of markets is that they can only work if there complexity is allowed to operate outside of the comprehension of human rationale (i.e. they must be irrational, or else they are broken).