Social Quotes - page 64
Make a list of all the environmental and social problems that today afflict us and our poor battered planet. – not just the extinction of species and animals and plants, that fifty years ago was the first signs of impending global disaster, but traffic congestion, oil prices, pressure on the health service, the growth of mega-cities, migration patterns, immigration policies, unemployment, the loss of arable land, desertification, famine, increasingly violent weather, the acidification of the oceans, the collapse of fish stocks, rising sea temperatures, the loss of rain forest. The list goes on and on. But they all share an underlying cause. Every one of these global problems, environmental as well as social becomes more difficult – and ultimately impossible - to solve with ever more people.
David Attenborough
The theories that I (and others) helped develop explained why unfettered markets often not only do not lead to social justice, but do not even produce efficient outcomes. Interestingly, there has been no intellectual challenge to the refutation of Adam Smith's invisible hand: individuals and firms, in the pursuit of their self-interest, are not necessarily, or in general, led as if by an invisible hand, to economic efficiency. The only question that has been raised concerns the ability of government to remedy the deficiencies of the market. Within academia, a significant fraction of economists are involved with developing and expanding on the ideas of imperfect information (and imperfect markets) that I explored. For instance, Edmund Phelps, this year's Nobel Prize winner, belongs to this "school" of thought. But in political discourse, simplistic "market fundamentalism” continues to exert enormous influence.
Joseph Stiglitz