[ExI] Belief in Market Efficiency.

[John K Clark]

"Damien Broderick" <thespike at satx.rr.com>

> It's very plausible that a vigorous free market would get you a *really
> good price * on a slave.

Yes exactly, the free market could give you a very good price on a slave or
indeed any commodity; perhaps not absolute best theoretical price, but
pretty damn good. As for the morality, it's true that if most people believe
in the virtue of slavery then the free market won't be able to stop it, but
neither could democracy or anything else. Even the market can't produce
morality in abundance but it can lift more people out of poverty than
anything else.

Is the market efficient? No, nothing is, but on a scale of perfect
efficiency on one end and complete randomness on the other I think the true
economy would be closer to the efficiency end. People still study the Carnot
cycle even though it describes a perfect heat engine because there is only
one theory that describes a perfect one while there are an infinite number
of theories that describe inefficient heat engines.

It is often pointed out that the free market does not work as well as an
infinitely wise leader who always made brilliant and moral decisions. To
that criticism I can only say, yea you're right.

 John K Clark