Adam Smith's philosophy provides the intellectual basis for the market economy* in USA and in China. However,his conclusion is to analyze fully the strengths and weaknesses of the market's invisible hand.
*Market economy: an economy that allocates resources through the decentralized decisions of many firms and households when they interact in markets for goods and services. I have witnessed the economies in USA and in China after reforms as well.
There are market failures: a situation in which a market left on its own fails to allocate resources efficiently. Perhaps the health care issue is a case in point for positive externality.
The community colleges are definitely a positive externality as I published "The Future of Community Colleges" in the Congressional Record,July 18, 1974.
You are the judge if a policy is justifiable to promote efficiency or equity and when it is not. Fair enough for your judgment?!
Francis Shieh aka Xie Shihao on a heavy snowstorm day,Saturday, February 6,2010 at 3.40 p.m.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment