Friday, February 24, 2012

Avoiding Economic Extremes


One of the claims for which Daniel Altman argues in Outrageous Fortunes is that neither a purely capitalist nor a completely communist economic system is sustainable in the long term. Among other problems, unrestricted capitalism tends to result in market failures that create inequality and in opportunities taken by people with more resources rather than by people with more talent. And uncompromised communism tends to fail due to isolation from wider markets and the difficulty of central planning. What is needed is an appropriate balance between control and regulation on the one hand and freedom and privatization on the other.

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