Friday, September 26, 2008

Free Market has no End

There is enough wolf cry on the buzzed word of “bailouts” and many free market economists have expressed their positive signal.

Economist Raghuram Rajan, finance professor at University of Chicago's Graduate School of Business and former chief economist with the International Monetary Fund, said “the government had rushed to spend public money without trying all the private sector solutions”.   

Read also Let Them Fail by at The Austrian Economists blog

Resources do not disappear, they get reallocated.  The market process is a mechanism for the continual re-evaluation and re-shuffling of scarce resources among alternative uses.  This is what is meant when we refer to the market as a dynamic process of entrepreneurial discovery and learning.

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