Rational markets

I’ve noticed an obnoxious trend lately, where liberals claim that free markets are perfectly rational. (MY isn’t the only perpetrator, but he’s the one that pushed me over the edge).

While Rational Choice Theory does say that “often”, the models assume perfect information or unbounded time to consider alternatives, the teachings of the Chicago School are not semantically equivalent to the concept of a “Free Market“.

Now, if Matt was arguing that a perfect market would prevent people from living in Dubai and making financial mistakes, I would have no quarrel. But no one is claiming that we live in a world with a perfect market. Heck, from my perspective, at this point, given the government’s ability to mandate the behavior of large corporations, what we have now doesn’t even qualify as a free market under the official definition, and it barely qualifies under a “normal person’s” definition.


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