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DU Home » Latest Threads » Forums & Groups » Topics » Economy & Education » Economy (Group) » Stiglitz: The Invisible H... » Reply #15

Response to Jim Lane (Reply #13)

Wed Apr 4, 2012, 01:28 PM

15. Right, it's circular, tautological, like all math.

It is argued that a "free market" produces a "Pareto Optimum", which means it's "efficient" which is why it's supposed to be the best we can do. Not a shred of evidence in the whole mess, dodgy assumptions, and it contradicts simple observation.

In fact there is no such things as a "free market", it's a mathematical fiction based on quite unrealistic assumptions like rational actors and perfect information, and all real markets are not free and do not have perfect information, all of the real players are looking for some way to game the system.

I'm not saying they have no answers, I'm saying their answers are unscientific dogma and a misuse of mathematics.

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