Writing at a time when most Americans praise free markets uncritically, Stiglitz challenges a number of beliefs about the wisdom of the "invisible hand." He argues, for example, that competition tends...

Writing at a time when most Americans praise free markets uncritically, Stiglitz challenges a number of beliefs about the wisdom of the "invisible hand." He argues, for example, that competition tends co drive profits down, not up. He suggests that manufacturers typically try to protect profit margins by banding togetl1er to create monopolies. He alleges that investors often destroy wealth instead of increasing it. He even claims that "markets by themselves often fail to produce efficient and desirable outcomes." Choose one argument that challenges our current common sense about free markets and explain Stiglitz's reasoning. Consider as well the role he appears to think that markets should be allowed to play