For free-marketeers, government is always the bad guy. As President Ronald Reagan memorably put it in his first inaugural address, “In this present crisis, government is not the solution to our problem; government is the problem.” Since the 1980s, markets have been idealised as the only way to achieve an optimal allocation of resources. A sound economy is guided by the spirit of entrepreneurialism, not politics, because the price mechanism reliably conveys information about the value of goods and services. Buyers bid, sellers sell to the highest bidder, and all parties are well-informed, rational decision-makers. An equilibrium price is always reached, ensuring an efficient outcome. It’s a
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