The Market, Market Failures, and Market Interventions

Abstract

One aspect of conflict is competition. Economic warfare has in many regions replaced traditional warfare and satisfies the human need to fight and conquer. This requires the rule of law as well as international norms, which are respected and can be enforced. But the free market can lead to injustices that must be remedied. Numerous interests justify such market interventions. But any type of market intervention leads to a higher level of prices. The sum of market interventions is reflected in the general level of prices and determines the standard of living in an economy. The opportunity provided by change is limited by the degree of regulation within a society. Whether or not an economy can maintain or even increase its powers of renewal and its prosperity can be seen in the density of its rules and regulations. The more highly regulated a region is, the more prices will rise and the further the level of prosperity will fall. The system also has its losers. They fall back into old value systems.