Free markets a Silver Bullet?

In a detailed comment, Anirudh asked:

Is free-market or government non interference as much of a silver bullet to a country’s problems as some people would have us believe? While advocating for free-markets do people sometimes have a tendency to overlook other factors like the country’s demography, its history, its geopolitical situation etc…

There are no silver bullets when it comes making things work in an economy. What we have is a choice between imperfect means. The search for the perfect solution is a fool’s errand. All we can do is to choose the best and realize that the best may not be very good. Continue reading “Free markets a Silver Bullet?”

Anti-discrimination Laws

gb asked:

1. What is your opinion on Anti-Discrimination Laws on hiring and firing in a free market?

I have two, and only two, rules with regards to discrimination: First is that every entity (individual and collective) should have the freedom to discriminate to its heart’s content without interference from third parties. The second is that the government must be strictly forbidden to discriminate against any person or group. Continue reading “Anti-discrimination Laws”

Question on MSP

Vijey asked:

1.Why is MSP (minimum support price) all the rage in India for farm products?
2.Is there no trust in the market mechanism leading to an organic price discovery?
3. Is our Market manipulated by Corporates leading to a distrust in this mechanism , since this seems to be the common discourse in the public domain?

There are various justifications that people provide for laws and regulations, including those related to agriculture. All laws and regulations have consequences that are seen, unseen, beneficial, harmful, intended, unintended, immediate and future. The world is a complicated place and it is hard to do only one thing — which I call the first law of ecology. When you do something, not just one thing happens; lots of other things happen — most of which are hard to anticipate. Continue reading “Question on MSP”