Monday, November 19, 2012

Leaving to market forces will never help

I was reading an article on R&D and in it, it opined that when companies are left to their own devices, they would do less R&D than is optimal even though it will ultimately benefit the company in the long run. It's one of the main reasons why credit is given when companies do R&D.

However, this opinion does sets me thinking. If the government needs to give credit for companies to do something that is actually beneficial to them in the long run, how can the government then say in the same breath that leaving it to the market forces will achieve whatever outcomes that are optimal for the society.

Just by taking the public transport everyday, it's quite obvious to anyone that in order for things to be in order, there must be some form of intervention, in terms of fines to discourage bad behaviour, or even benefits to encourage good behaviour. Like it or not, when humans are left to their own devices, they will usually take the easiest way out.

I never believe in leaving to market forces as the market will mostly seek to benefit themselves, and not to society as a whole. Pity though.

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