We are faithful market price worshipers
Faith healers all
If we believe market price dynamics will repair market generated wounds
Start with the forex markets and our willingness
To let them cast their lightening bolts on domestic employments
We act as if the imperfections in price dynamics are rapidly minimized
As if the markets generate solid second best or possible best price arrays
In reality no set of actual transaction prices in any market display dynamic paths
Close to optimal
Intervention can always improve the welfare outcomes once an adequately broad
"field of welfare impacts " is scrutinized
Example
The optimal wind down of that Indiana carrier plant
Laissez faire actions by corporate CEOs
Leave out huge loses to the community
Easy guess
the welfare aggregate would be higher
if the plant remained in operation
until fully automated or fully obsoleted or
It's possible products even with modifications has no domestic market
Joe and his posse member Arnott have a model for fully insured firms
That out performs financial autarkic firm systems
That's an obvious metaphor here
However close and compensate ie insurance system
Might be bettered by a stay open with subsidy system
Where we haven't yet designed the right set of environments and rules for firms of course
This system might be worse then simple close and compensate
We must await
Plans mart gosplans await the projects of even better micro structures and institutions
