Economists use the concept “invisible hand” to refer to the marketplace’s tendency self-regulate itself by correcting inefficiencies and move towards equilibrium.
With a revolution in transparency fueled by technology, I think governments will be increasingly forced to be more accountable and become fiscally responsible. Currently, it’s the wild west in some regions/nations because, I suspect, the importance of running a balanced budget isn’t widely understood. Future generations will look back and think “What were they thinking?”
I love this revolution towards an increasingly intelligent population because investors will reap economic benefits from exploiting inefficiencies. For example, George Soros made $1 billion by exploiting The Bank of England’s attempt at manipulating its interest rates.
The late Milton Friedman used the analogy, “You can’t make an omelette without breaking eggs,” because, to date, capitalism maximized human potential and the well-being more than any other system.
I believe that governments that markedly intervene or have corruption issues (eg. Russia) will not be tolerated by investors and will be punished in the long-term.
It’s up to private individuals to prosper and succeed. Thousands of years ago, it was up to private individuals as hunter-gatherers to work hard, and eat what they killed. The sense of entitlement some people feel in a society with so much potential is unwarranted.
It’s shocking that otherwise seemingly intelligent, logical people would think socialism is a fair solution when it has a terrible track record. Read Age of Turbulence by Alan Greenspan for multiple examples.
