Markets Don’t Work Anymore

By EmmaZahn on Thu, 12/12/2013 - 11:56am |

Sure, plenty of young Stanford graduates are getting rich finding new ways for teens to share selfies, and yes, a few serious IPOs are happening as well, but these examples do not resolve the problem that there has been a breakdown in the societal bargain that comes with market capitalism.

In societies like the U.S., we are supposed to tolerate inequities in wealth and income because the greater good is served by a market system that rewards effort, competitiveness and innovation and which punishes those that fall short of those standards. History has taught us that this model is greatly superior to that of a planned economy like that in the former Soviet Union.

But there are now such distortions in global financial markets that these benefits are all but lost.

URL:

http://blogs.wsj.com/moneybeat/2013/12/11/bubble-schmubble-real-problem-is-markets-dont-work-anymore/