Compare the Markets

The free marketers have an unwavering faith in the ability of markets to manage everything and self-correct when things go awry. However, there are three important things to remember where markets are concerned.

1. Markets operate on the basis of efficiency so as to maximise profit. This has the consequence that markets abhor excess capacity, as excess capacity costs money and returns no profit. This is a major drawback in areas where excess capacity creates a buffer in times of emergency. Examples include the NHS (as we have found to our cost), utilities, flood drainage, motorways, etc, etc.
2. Markets do correct themselves, but I can think of no example where they correct themselves before the damage is done. Invariably there is a long gap between greed - the natural consequence of an unregulated market - causing a problem and self-corrective action occurring.
3. Markets are impersonal and don't take people into consideration - they are Darwinian.

With regard to point 1 above, lack of excess capacity in an emergency situation in itself provides the potential for profit - lots of it: when urgently needed extra capacity is sought, it becomes excessively expensive due to scarcity, as has been shown by the PPE scandal, but at a huge financial cost and the human misery the lack of it produces.