Free markets improve society by allowing some firms to fail, which drives innovation and efficiency; however, when governments intervene to control risk and prevent failure, this substitution causes longer-term economic problems including slowed growth and prevented innovation, ultimately giving free markets an unfair negative reputation.
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Our free markets aren’t really freeAjouté :
I think free markets may get blamed for more of the issues in our economies than um they really deserve blame for uh partially because our markets are not really as free as we think they are. The part of free markets that makes society better off is that it allows some of those firms to fail. And we have substituted that rather uh sometimes rather um uncomfortable part of the market with governments being trying to control risk to avoid failure. And I think that that actually causes longer-term problems and causes longer-term um uh slows growth, uh prevents innovation, and um and also then gives free markets a bad rap.
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