Do you think the economy is self-regulating? Do you think economies will always go back to its potential as Classical view believes?

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  • 2 years ago

    Economies self regulate in the sense that some businesses will thrive and others will fail. What kind of effect that has on the population as a whole is a separate consideration, one which classical economics does not address. Adam Smith wrote before the sciences of sociology and political economy existed. He was a moral philosopher who would have been horrified by the working conditions of the new British factories.

  • 2 years ago

    No I don't. Economics is pretty clever with all the impossible assumptions for a model. It's basically assume you live in a perfect world, so there - we have utopia. Your example, assume we have a self-regulating economy - result: the economy is self-regulating.

    So if you go back and read the list of assumptions I'm sure it says in a perfect world. Like maybe perfect competition? You never even can get perfect competition in the real world.

    Source(s): Protect me from knowing what I don’t need to know. Protect me from even knowing that there are things to know that I don’t know. Protect me from knowing that I decided not to know about the things that I decided not to know about. Amen.
  • Anonymous
    2 years ago

    In the long term if everyone follows the regulations and guidelines of the government correctly. But the argument that everyone is dead in the long term is still there. But many do believe that a human being does not face any extinction that soon.

  • Anonymous
    2 years ago

    Right now, no, it is very proven and very known that the current world economy is only kept afloat and stabilized per region by quite a number of black market owners of it all. So much so that the black market now owns a good 60% of above board markets. Just how do you think the 6 pillars of economies is so utterly destroyed and there has been no market crash yet, NO WAY is that self regulating at all, and if you don't know that by now, wow, you must be blind to a whole lot other than that.

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