Paul Walker blogs a list of 10 economic propositions accepted by almost all the top economists:
- The market economy is the most efficient of all economic systems.
- Free trade helps economic development.
- Good institutions help development.
- The best measure of a good economy is its growth.
- Creative destruction is the engine of economic growth.
- Monetary stability, too, is necessary for growth; inflation is always harmful.
- Unemployment among unskilled workers is largely determined by how much labor costs.
- While the welfare state is necessary in some form, it isn’t always effective.
- The creation of complex financial markets has brought about economic progress.
- Competition is usually desirable.
Sorman closes this piece by noting that one of the hardest ideas to translate into language that public opinion will accept is the fact that even the best of all possible economic systems is still imperfect. Markets are one of the many human institutions that are the result of human action, but not of human design. But they are based on people and without perfect people you are unlikely to get perfect markets. But for all these imperfections, we have yet to find a better economic system.
Market economies are indeed not perfect. But as Paul Walker says, no-one has found a better system. It reminds of the Churchill quote about how democracy is the worst possible way to choose a Government – except for all the other ways!