Title: Criticism of Free Market Economics - Economics Help
Headings: Criticism of Free Market Economics
Criticism of Free Market Economics
Criticisms of free-market economics
Economists critical of free-market economics

Content: e.g. the US pays high admin costs for private health insurance. Instability of free markets. John Maynard Keynes argued capitalism has a tendency to boom and bust economic cycles – which leads to periods of mass unemployment. Hyman Minksy suggested that financial markets were inherently unstable due to forces of irrational exuberance. See: Financial instability. Over-production of negative externalities e.g. environmental pollution and congestion, which lower living standards. Over-consumption of demerit goods – goods where people may ignore or under-estimate costs, e.g. smoking, alcohol. Unsustainability. Free markets are concerned with the present moment but ignore implications for long-term ecological stability.