Shark Problem? Add Blood!

I love this line from Don Boudreaux:

Among the articles of faith of “progressivism” is the theory – which never yields to experience – that you can fill the sea with enormous quantities of fresh red meat and then, Moses-like, successfully command the sharks not to devour it.

I more and more believe the fundamental problem is a plain old-fashioned distrust of the possibility of self-equilibrating markets and a correlative deep-seated faith in the possibility of expert management. We are still having the free market versus central planning debate, and the market perspective has never made very strong inroads against the entrenched interests of financial dirigisme. So financial markets remain political down to their very foundations. The relevant elites find the prospect of giving that up completely terrifying. So the best our best and brightest can really do is wish aloud for a better breed of bureaucrats. This is completely pathetic, but the utter lack of confidence in the possibility of advanced financial markets without central planning leaves us precisely where we started.

Author: Will Wilkinson

Vice President for Research at the Niskanen Center