Liberty Discussion, held on July 29, 2016, was on article ‘The Market Doesn’t Solve Problems; People Do by Louis Rouanet of Mises Institute. The participants discussed on whether market itself solves the problems or the people solve the problems in the market.
Few takeaways from the discussion are as follows:
- Free market creates ground for people to innovate, generate new ideas and solve many problems. However, free market cannot create utopian world.
- Institutions can fulfill common needs and wants of the people but may not be able to fulfill the individual wants. Institutions does provide incentives. For example, the institutions like private property rights provide incentives for the people to earn more property.
- Some participants argued that free market might not solve the problem of quality education and health services to all. These are the sectors where government ought to intervene. However, others were of opinion that products of free market such as Corporate Social Responsibility can solve these problems.
- An argument about incentives was that government may provide incentives for people to act in a way but they may not act to the incentives. But, individuals through their actions and interaction can create incentives to other individuals.
- Some members claimed that as private sector is more efficient in providing all kinds of goods and services to the people, security services must also be provided by private sector instead of the government.