11. Markets coordinate billions of actions and can do much more harm than individuals ever could. Freer markets might work better if people were prudent. But many evidently aren’t. And the prudent can’t quarantine those who aren’t: Markets can aggregate and amplify imprudence to affect everybody (e.g. treating obesity-related diseases increases everyone’s medical insurance costs). We don’t need “less regulation”; we need fit-for-purpose regulations. As with political freedoms, the price of market freedoms must be eternal vigilance. Markets are like fires. If not carefully managed, they consume everything in their path. But controlled and put to good use, they’re invaluable. We unbridle them at our collective peril. That’s imprudence. - http://bigthink.com/errors-we-live-by/are-people-prudent