Of course, the simple and obvious response to this answer is that market competition does not always lead to ideal outcomes. True. But the mistake here is comparing market outcomes to a theoretical ideal rather than the next best alternative. What is the next best alternative - or at least the alternative offered by critics of market outcomes? Government.
click here for the whole article.
The point is that you can't compare capitalism with imperfect actors to a government with perfect, all-wise actors. Given imperfect people, I'll take the checks and balances associated with competitive markets.
Question for class: order the following in terms of desirability (and support your answers):
- Capitalism with perfect people
- Capitalism with imperfect people
- Socialism with perfect people
- Socialism with imperfect people.