I never liked the argument/idea that the economy will regulate itself, since it relies on everyone acting perfectly in their own self-interest, only thinking about each transaction in isolation.
But people do nice things for other people all the time (charity, community service, favors, etc), some people will do seemingly nice things in order to secure a bigger benefit in the future (operating at a loss), and some people will take advantage of others’ niceness.
It also ignores that there are asymmetrical interactions in society. Sure, you might wish the costs of housing was lower, but you can’t opt out of housing.
I never liked the argument/idea that the economy will regulate itself, since it relies on everyone acting perfectly in their own self-interest, only thinking about each transaction in isolation.
But people do nice things for other people all the time (charity, community service, favors, etc), some people will do seemingly nice things in order to secure a bigger benefit in the future (operating at a loss), and some people will take advantage of others’ niceness.
It also ignores that there are asymmetrical interactions in society. Sure, you might wish the costs of housing was lower, but you can’t opt out of housing.
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