Walras Quotes

“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]”
― Joan Robinson, Economic Philosophy