Non-pathological markets require non-pathological institutions — and America has neither as Russ Roberts explains.
Note well: Hayekian analysts were pointing to many of these pathologies and others before the crisis hit. Non-pathological markets also require a non-pathological class of regulatory, political, and scientific elites. Institutions won’t change until the intellectual and moral pathology of the elites is addressed. The tea party movement is a helpful first step — the next step is to directly confront America’s failed elite class, as Arnold Kling and Glenn Reynolds are doing.