Is the free market efficient? – Editor
The following extract is from an article by Kaye Lee which recently appeared in the AIM Network :
” We are constantly told about the efficiency of the free market. But the market obviously is not efficient. The most basic law of economics – necessary if the economy is to be efficient – is that demand should equal supply. But we have a world in which there are huge unmet needs – investments to bring the poor out of poverty, to promote development in less developed countries in Africa and other continents around the world, to retrofit the global economy to face the challenges of global warming.
At the same time, we have vast under- utilized resources – empty homes, homeless people, and workers and machines that are idle or are not producing up to their potential.
Unemployment – the inability of the market to generate jobs for so many citizens – is the worst failure of the market, the greatest source of inefficiency, and a major cause of inequality. ”
1. Kaye Lee, AIM Network (9 Oct 2016):
“We should measure the health of our society not at its apex, but at its base”