"Markets fail. That's why we need markets."
Arnold Kling and Nick Schulz, authors of the important new book From Poverty to Prosperity, have a really sharp op-ed in the Christian Science Monitor:
Markets fail. That's why we need markets….
Given this dynamic, markets are unpredictable, prone to booms and busts, characterized by bouts of exuberance that are rational or irrational only in hindsight.
But markets are also the only reliable mechanism for sorting out this messy process quickly. In spite of the booms and busts, markets drive genuine long-run innovation and wealth creation.
Kling and Schulz take aim at people who think "markets can do no wrong," and the discuss how government takeovers of markets create far more problems than they solve.
Reason.tv interviewed the authors recently. Check it out below.