The thought in response to the article What To Do When Markets Fail?
I think it’s the main mistake to assume that the market is rational. IMHO, any socialistic undertakings sooner or later will fail exactly because they are a try to rationalize the market. That is, socialistic management is the maximum expressed idea of rational governance. Free market itself is not rational at all.
I am surprised why there are so few people today (I don’t mean average citizens, but thinkers) who are trying to find some 3rd way taking into account the mistakes of both theories.
We can clearly see that once a social/economical order with its dominating theory (“socialism” or “free market”) leads to a decay, the crowd of “thinkers” immediately rushes to chant the opposite one.
The chart with Nobel Prizes looks impressive. But I am aware at least of one Nobel Prize winner Robert Aumann (2005). In some sense I consider the game theory to be that 3rd way, because it takes into account the real people behaviour (unlike socialism, which is idealistic by its nature) and offers real methods, that allow directing this behaviour to the right course (as opposite to full uncontrollability of the free market).0