Comment by wqaatwt
2 hours ago
Actually markets are always rational, perfectly efficient and there are no speculative bubbles? Of course not.
So its obviously suboptimal, only question if there is a more optimal system.
> central planner who somehow has all the information
Every developed country is balancing that with free markets and its the mainstream view that a balanced system is optimal (the exact ratio is of course something’s that not quite settled).
Yes and going back to the your original question
> Assuming that the allocation of capital is somehow aligned with what’s optimal for the economy/society seems naive
The empirical facts are that the disposable real wages have gone up by more than 50% over the last 20 years. People are way richer now than before and the growth in USA is much higher than any other developed nation other than small edge cases.
The causal link between those two data points is not exactly obvious.