In his book, The Seen, the Unseen, and the Unrealized, Dr. Per Bylund discusses his views on free markets, entrepreneurship value, and reflects on government regulation and its impacts. In chapter 5, Bylund talks about how the market is constantly in disequilibrium. Entrepreneurs are always trying to create things consumers will want in the future and provide these things at the lowest cost. Rather, I take that in another way. I think the markets are always chasing equilibrium, but cannot reach it. To Bylund's point, there are things economics cannot explain such as why consumers are always changing their preferences. Using the apple market example, Bylund highlights how estimates in one market can have unknown effects on other markets, and all economics can do is try to predict it. The ripple effect is random. In the case of the broken window, the cost of replacing a pane has far-reaching effects on the economy. Alternatively, the unseen effects of not breaking a window still create the multiplier effect of money in the economy. The unseen effects are those that would be beneficial from the start, rather than having to replace a window that was good in the first place.
Chapter 7 starts by wrapping up the previous two chapters, stating that basic needs like food, water, and shelter are more urgent matters to deal with when they are lost. I agree. Although the aftermath of destruction can be profitable, the destruction in the first place is unnecessary and creates lost time and effort in the markets. Regulation that aims to steer certain kinds of production needs to add a benefit to that production. He uses the deregulation of solar energy as an example. If it's more taxably beneficial for companies to create solar energy, more businesses will do so. I think that it is hard for the government to properly regulate the industry because ultimately consumers are what makes businesses change. Response to consumers and profits drive entrepreneurs. Really, regulations end up separating the best entrepreneurs from less successful ones. The best benefits of regulations are the ones that protect consumers. The most prominent example I can think of is the regulation of the meat industry.
Chapter 9 discusses the unrealized. The unrealized is what never occurs due to government regulation. This chapter explains Bylund's fascination with the free market. He says that an unregulated market gives all parties the freedom to make the choices that most benefit them. The freedom of choice is what really matters to him. I disagree, partially. While I think the government does a little too much meddling in the markets, I do think there are some instances where this is warranted. The case of a carbon tax or other programs that will help the planet in the long term from global warming is justified. Long-term shelter for humans on this planet is a basic survival need, and it should be urgently taken care of. However, it is not yet profitable for businesses to produce in ways that do not harm the planet. Fixing this issue would be complicated, but would be a realized gain from regulation.
