The problem is that a lot of people treat those assumptions as if they were sacred, fundamental laws of the universe.

There are a lot of business people and government officials for whom the notion of "free, unfettered markets" is akin to a religious goal. Look around you.

There are NO guarantees that markets will work well. They CAN lead to horrific equilibria, like inequality so extreme that large groups of people cannot afford food and shelter without government assistance, or financial crises that seem to come "out of nowhere," with too many possible culprits that could be blamed (greedy speculators, greedy financiers, complacent banks, idiotic regulators, government-sponsored entities, etc.), depending on who you ask.

I say, let's be humble, open-minded, willing to try new things, and willing to change our views when the facts disagree with them.[a]

---

[a] In the words of Lee Kuan Yew, who led the transformation of Singapore from one of the poorest to one of the wealthiest societies on earth:

> My life is not guided by philosophy or theories. I get things done and leave others to extract the principles from my successful solutions. I do not work on a theory. Instead, I ask: what will make this work? If, after a series of solutions, I find that a certain approach worked, then I try to find out what was the principle behind the solution. So Plato, Aristotle, Socrates, I am not guided by them…I am interested in what works…Presented with the difficulty or major problem or an assortment of conflicting facts, I review what alternatives I have if my proposed solution does not work. I choose a solution which offers a higher probability of success, but if it fails, I have some other way. Never a dead end.

> We were not ideologues. We did not believe in theories as such. A theory is an attractive proposition intellectually. What we faced was a real problem of human beings looking for work, to be paid, to buy their food, their clothes, their homes, and to bring their children up…I had read the theories and maybe half believed in them.

> But we were sufficiently practical and pragmatic enough not to be cluttered up and inhibited by theories. If a thing works, let us work it, and that eventually evolved into the kind of economy that we have today. Our test was: does it work? Does it bring benefits to the people?…The prevailing theory then was that multinationals were exploiters of cheap labor and cheap raw materials and would suck a country dry…Nobody else wanted to exploit the labor. So why not, if they want to exploit our labor? They are welcome to it…