26 Jun 2017

Monday's cartoon

This video and poem by Russ Roberts does a nice job at explaining how "nobody" is in charge of markets, even as they "deliver the goods." It's part of his effort to explain basic (but very important economics) to regular folks.

While I agree with his portrait of 'the invisible hand" at work, I think that he puts far too little emphasis on the disruption that markets can bring to people's lives, via competition that destroys their businesses and jobs as well as the "negative spillovers" that are not "priced correctly" -- e.g., GHGs emitted from the use of fossil fuels. Read more about those caveats here.

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