If market type economies are normally better at regulating themselves then centrally planned economies. What caused such massive market failures back in 2008 and and 2009.
More over what do you guys believe would cause a mixed type economy that seems to be closer to a market type to become so unregulated. Stating greed seems arbitrary because that's one of the main motivators of the"Invisible hand" isn't it?
Sorry I'm just thinking out loud as I have been learning the basics to microeconomics.
---
My meaningless, expensive, dangerous game is better than your meaningless, expensive, dangerous game!-Mimir
Nothing has to cause an economy to be unregulated. Something has to cause it to be regulated. Unregulated is its default condition.
That said, people abusing the system are one step ahead of the game. We don't regulate something until we figure out that it has the potential to be abused or that it's inefficient. The people who are best at finding potential for abuse are the ones who abuse it and get away with millions of dollars of theft, and then there are the systems that we don't realize are inefficient until they've wasted millions. And that's just caused by lack of foresight/wisdom/information.
Let's call it "abuse" when money is wasted or stolen intentionally and "inefficiency" when something is set up with good intentions. I think it's clear that the market crashes were caused by a lot of both. Insurance systems seem to have fallen apart mostly through abuse, and the housing market seems to have been mostly through inefficiency.
Problem with an unregulated system is that a lot of people will abuse the system to make a little money. The problem with a regulated system, is that a few people will set up and game the regulation to make a whole lot of money.
---
"...you should try reading my posts being getting all emo." --FoxMetal
Problem with an unregulated system is that a lot of people will abuse the system to make a little money. The problem with a regulated system, is that a few people will set up and game the regulation to make a whole lot of money.
Or vice versa. Depends who's doing the regulation, in part.
---
Shake your windows and rattle your walls.