Quote by Joan Robinson

“Not only is the system distorted by its bias towards investing in what happens to be profitable, but even within that sphere there is no reason to expect the profit motive to lead to a well-balanced pattern of investment. This has always been a weak point in the neo-classical system. The doctrine that, under conditions of free competition, given resources are used to yield maximum satisfaction, applies essentially to an equilibrium position. It can be demonstrated only by assuming that an equilibrium exists and showing that a /departure /from it would be harmful (it also has to assume, of course, that the distribution of income is somehow what it ought to be). Walras had the ingenious idea of making the inhabitants of his market “shout” their offers until the equilibrium has been found, and then start actual trading at the equilibrium prices. It is pure effrontery to extend this kind of equilibrium conception to investment; an equilibrium pattern of investment worked out on this system is possible only in a fully planned economy (if there). [p. 125]”

Quote by Joan Robinson