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m4nu3ltoday at 2:10 AM2 repliesview on HN

This is a very bad analogy. Markets behave like an imperfect optimisation algorithm, and you can prove that, under some conditions which are most often met, they give people what they want. In fact, you can almost always expect governments to be less effective and less rational than markets in allocating resources to satisfy the desires of people, even when democratic. You can prove it either by using the same logic that tells you when markets fail (externalities, information asymmetry), or empirically by looking at what was basically the most perfect A/B test we had on society over the 20th century. Although it was a comparison between mixed economies and fully centralised ones, there is no reason to expect the optimum mix of centralisation/distribution to be closer to the worst-performing one (the fully centralised one).


Replies

plaguuuuuutoday at 2:25 AM

You can't prove your free-market theory because it's not falsifiable.

This is why arguments about this go in circles. You either argue from a pure theoretic POV back and forth, or you go off data - at which point, bringing up every failure of free markets (like, obviously, US healthcare) is dismissed as "not really a free market"

Even the theoreticians on the free-market side are far less solid than.. all the other sides (behavioural economics, information asymmetry.. even Marx) but I regard it as deeply unpragmatic when there's so much data out there indicating what actually happens in the real world when you go one way or the other.

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gverrillatoday at 2:50 AM

> A/B test we had on society over the 20th century.

Well, by your own logic, there's a new a/b test running right now. Its results aren't exactly going your way.

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