Given the incentives in place, the supply and demand curves for methamphetamines still meet, and the market clears.
Sure it does. But the individual actions that occur in so doing are different than they would otherwise be. So you've got hordes of young black men (yes, stereotyping, but to make a point) killing themselves supplying drugs. This wouldn't be happening in the free market; you'd be buying it legally from your pharmacist, or even the local convenience store. Those young men would still be alive.
the fall of 2008 was the efficient outcome.
I've no doubt that this is true. Unfortunately, even in that, the perversions of the market have not been allowed to resolve themselves. We've got the "too-big-to-fail" thing that is continuing to incent risky behavior, and we've got the government shoring up housing prices, preventing that bubble from deflating.
Sure it does. But the individual actions that occur in so doing are different than they would otherwise be. So you've got hordes of young black men (yes, stereotyping, but to make a point) killing themselves supplying drugs. This wouldn't be happening in the free market; you'd be buying it legally from your pharmacist, or even the local convenience store. Those young men would still be alive.
the fall of 2008 was the efficient outcome.
I've no doubt that this is true. Unfortunately, even in that, the perversions of the market have not been allowed to resolve themselves. We've got the "too-big-to-fail" thing that is continuing to incent risky behavior, and we've got the government shoring up housing prices, preventing that bubble from deflating.