>This is such an important point, and why free markets work best.
Well, there's a subtlety there.
It's not that "free markets work best". It's that the efficient market hypothesis claims that a market with perfect information dissemination consisting of uniformly rational agents will deliver Pareto-optimal resource allocations.
There's a lot to disagree with in that sentence; market agents collude, people are demonstrably irrational/rely on cognitive heuristics and just because something is Pareto efficient doesn't mean it's fair or equitable.
All three are valid critiques, and the case in point in TFA - the market allocated money to Yo, but that doesn't mean a priori that funding Yo is a worthy and moral choice.
So, if we have markets that routinely deliver inequitable outcomes it's perfectly reasonable to ask - why is this happening?
Well, there's a subtlety there.
It's not that "free markets work best". It's that the efficient market hypothesis claims that a market with perfect information dissemination consisting of uniformly rational agents will deliver Pareto-optimal resource allocations.
There's a lot to disagree with in that sentence; market agents collude, people are demonstrably irrational/rely on cognitive heuristics and just because something is Pareto efficient doesn't mean it's fair or equitable.
All three are valid critiques, and the case in point in TFA - the market allocated money to Yo, but that doesn't mean a priori that funding Yo is a worthy and moral choice.
So, if we have markets that routinely deliver inequitable outcomes it's perfectly reasonable to ask - why is this happening?