Market Systems Deliver the Goods

June 2, 2009

In Conflict of Visions, Thomas Sowell quotes Lord Peter Bauer of the London School of Economics:

The market system delivers the goods people want, but those who make it work cannot readily explain why it is so.  The socialist or communist system does not deliver the goods, but those who operate it can readily explain away its failure.

I like this quote for a two reasons.  First, it acknowledges that explaining why markets work better than anything else is difficult, which is the main reason I started this site.  I want to find simple and effective ways to explain this.

Second, we’ve all heard failure be explained away.  It sounds like, “we didn’t have the right people” or “we underestimated the response to such and such” and is followed with, “we have every confidence we’ll get it right next time.” 

Markets fail too.  But, markets correct failures better than non-markets.  Consider Enron.  The market corrected that failure long before the authorities knew what happened.


One Response to “Market Systems Deliver the Goods”

  1. в конце концов: мне понравилось…

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