Free Markets Aren't Perfect

Here is an article that debunks the popular notions of free markets and perfect “ownership societies.” Having read the article I feel more inclined than ever to remind investors, “Caveat Emptor”.

Article Introduction (Via Models and Agents)

The idea of an ownership society is premised on a set of, let’s say, “ambitious” assumptions about the state of the real world.

1. That choice is good.
2. That we are fully aware of all the choices available to us, when faced with a decision.
3. That we are capable of evaluating these choices and assess which one is best for us.
4. That we are rational, that is, given our preferences (and what we can afford), we will go for the choice that is best for us.

Article Excerpts (Via Models and Agents)

“Ultimately “ownership” is pointless, and at times dangerous (as we have painfully come to know), if we don’t understand what we own. So unless you’re prepared to vow that every American is a genius, a polymath and with time to spare on assessing the benefits of cetearyl alcohol for hair fiber, you might want to deflate somewhat your vision of the American dream.”

Click here to read about free markets and their imperfections

About Miguel Barbosa

I run this site.

24. October 2008 by Miguel Barbosa
Categories: Curated Readings, Finance & Investing | Leave a comment

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