Thread Depression: By the numbers...

I'm not saying the "value" as compared to other things won't change. Of course it will. The difference is that its set "just right" by the market, not artificially high or low by some suit in Washington.

In fly's economic model, government is the only market failure.

Strong efficiency and arguably semi-strong efficiency markets don't exist outside of academics.
 
"Efficient" markets are better than government setting prices...
You need to read some behavioral finance titles, also should look up "directional position." Efficient market theory is good for macroeconomics in the classroom and 20/20 hindsight.
 
In fly's economic model, government is the only market failure.

Strong efficiency and arguably semi-strong efficiency markets don't exist outside of academics.

You need to read some behavioral finance titles, also should look up "directional position." Efficient market theory is good for macroeconomics in the classroom and 20/20 hindsight.

Notice the quotes around efficient. I understand its not perfect, but I'm pretty sure its better than what we have now. It would surely prevent the government from endlessly expanding...
 
It's as if nobody on the right side of the isle studied the Industrial Revolution. Free markets apparently blow pretty hard.
 
Notice the quotes around efficient. I understand its not perfect, but I'm pretty sure its better than what we have now. It would surely prevent the government from endlessly expanding...

Okay then. You're right. Your classroom version of efficient market theory is way better than what we have now. Unfortunately it has very little reflection on our reality. Marxism looks pretty darn good on paper too.
 
Okay then. You're right. Your classroom version of efficient market theory is way better than what we have now. Unfortunately it has very little reflection on our reality. Marxism looks pretty darn good on paper too.

I'm sorry for including the word efficient and upsetting you.
 
I'm sorry for including the word efficient and upsetting you.

I love you, fly.

That's just one of my things. Free market =! Efficient market, but there are a lot of folks who think those are the same damn thing. Now I will say that introducing market failures (government) to cure other market failures is dubious, but what else can we do? The Industrial Revolution showed us what happens to both markets and people without government. I know of probably a handful of people who thought that those distributions were favorable.
 
It's as if nobody on the right side of the isle studied the Industrial Revolution. Free markets apparently blow pretty hard.
Well I'm on the right side, and I know there is no such thing as a truly free market. It is a unrealistic to think that any market can be perfectly "free" and "efficient", since one implies freedom from any control and one requires that every participant has the same information at the same time. The existence of ethical laws (murder for example), limited liability corporate person-hood, external factors...
 
It would surely prevent the government from endlessly expanding...
The government is a reflection of the people it represents, not an independent entity that serves it's own purposes.

Also note, I said the people it represents, not 'the people' in general.
 
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The government is a reflection of the people it represents, not an independent entity that serves it's own purposes.

Also note, I said the people it represents, not 'the people' in general.

True dat.