Perhaps one day earthquakes, hurricanes and financial crashes will all be predictable. But we don't have to wait until then for seismology, meteorology and economics to become sciences; they already are.
Eric MaskinRead
Many markets work best with little or no outside interference. But others - especially those subject to big 'externalities' - need a helping hand.
Interpretation
Markets can function independently, but some require external assistance to mitigate negative impacts.
In this quote, Eric Maskin emphasizes the dual nature of markets, indicating that while many operate efficiently on their own, certain markets, especially those affected by significant external factors, may struggle without intervention. This intervention is necessary to ensure fairness and to address issues that may arise from externalities, such as pollution or economic inequality, that can distort market outcomes.
In practice
Referencing this quote during a lecture on market dynamics.
Perhaps one day earthquakes, hurricanes and financial crashes will all be predictable. But we don't have to wait until then for seismology, meteorology and economics to become sciences; they already are.
Without calculation, economic activity is impossible. Since under Socialism economic calculation is impossible, under Socialism there can be no economic activity in our sense of the word All economic change, therefore, would involve operations the value of which could neither be predicted beforehand nor ascertained after they had taken place. Everything would be a leap in the dark. Socialism is the renunciation of rational economy.
When money is controlled by a few it gives that few an undue power and control over labor and the resources of the country. Labor will have its best return when the laborer can control its disposal.
Those who advocate devaluation are calling for a reduction in the wage levels and the real wage standards of every member of the working class.
And you can't have a prosperous economy when the government is way overspending, raising tax rates, printing too much money, over regulating and restricting free trade. It just can't be done.
There never has been a time in our history when work was so abundant or when wages were as high, whether measured by the currency in which they are paid or by their power to supply the necessaries and comforts of life.
If a government resorts to inflation, that is, creates money in order to cover its budget deficits or expands credit in order to stimulate business, then no power on earth, no gimmick, device, trick or even indexation can prevent its economic consequences.
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