Thread by @AmSolidarity

We’ve said this before, but one of our problems with doctrinaire laissez-faire economics is that it often amounts to a form of moral relativism.

A pretty obvious way to see that is with a subject lots of people can relate to: housing. 🏡🏡🏡

In many metros around the country, rising housing prices are caused in large part by speculation rather than ordinary buyers looking for a place to live. In many cases the “investors” don’t improve the property, or even rent it out, but just sit on it and wait to sell.

Now if you care about is protecting property rights and contracts, then buying a house as a speculative asset is just as legitimate as living in it.

But it’s a problem if you think a house sitting empty is inherently less socially valuable than one providing a home for a family.

Markets are very good are collecting information about what people want and what they’re willing to exchange for it.

But the market by itself also can’t tell us whether some of those subjective preferences are in fact more important than others.

Spoiler: sometimes they are.