Markets are not always selfregulating from "summary" of 23 Things They Don't Tell You About Capitalism by Ha-Joon Chang
The idea that markets are always self-regulating is a popular myth that has been perpetuated for many years. This myth suggests that markets have a natural ability to correct themselves and find the optimal equilibrium without any external intervention. However, this is far from the truth. In reality, markets are not always self-regulating and often require intervention to function properly. One of the main reasons why markets are not always self-regulating is due to the presence of externalities. Externalities are the side effects of economic activities that are not reflected in the prices of goods and services. For example, pollution is a negative externality that is often not accounted for in market transactions. As a result, markets may fail to allocate resources efficiently and may require government intervention to address these externalities. Another reason why markets are not always self-regulating is due to the presence of imperfect information. In many cases, buyers and sellers do not have perfect information about the quality or price of goods and services. This can lead to market failures and the need for regulations to ensure transparency and fairness in market transactions. Furthermore, markets are often dominated by a few powerful players who can manipulate prices and exploit consumers. This lack of competition can lead to market inefficiencies and the need for antitrust regulations to prevent monopolies and ensure fair competition. In addition, markets can also fail to provide essential goods and services, such as healthcare and education, to all members of society. In these cases, government intervention is necessary to ensure that these basic needs are met for everyone.- The idea that markets are always self-regulating is a myth that ignores the complexities and imperfections of real-world markets. In many cases, markets require external intervention to function properly and ensure that resources are allocated efficiently and fairly.
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