The strength of neo-classical economics is not in the efficiency of the market allocations. The neo-classical economic system is appealing because it unleashes the creative power of the population better than any other system. That it also results in efficient allocations is nice but hardly dispositive.
Singapore gives the lie to the proposition that free and unfettered markets produce the highest and best quality of life, but not even Singapore disproves the proposition that free markets (albeit, not so unfettered) produce the most inventive societies.
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