
Complexity Economics Shows Us Why Laissez-Faire Economics Always Fails - ryan_j_naughton
http://evonomics.com/complexity-economics-shows-us-that-laissez-faire-fail-nickhanauer/
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Mirioron
> _The story Beinhocker tells is simple, and not unlike the story Darwin
> tells. In an economy, as in any ecosystem, innovation is the result of
> evolutionary and competitive pressures._

/.../

> _And like an untended garden, an economy left entirely to itself tends
> toward unhealthy imbalances._

That's a pretty bad analogy, isn't it? Humanity is the result of evolution in
an untended garden. Once humanity stepped up and started meddling with the
environment things have rather rapidly deteriorated. I would argue that the
way the author got this analogy wrong is also the way they get markets wrong.
Markets are efficient in a long term perspective. A free market won't give you
as much efficiency as a managed market would give you at a single point in
time, but in the long run a free market is going to be more efficient. The
management of a market eventually becomes too cumbersome and innovation takes
a backseat to keeping the existing actors happy.

