I like the headline. Nobody really knows how the economy works. Economics is an attempt to explain how wealth and prosperity are created. That also means some branches are biased towards what we already have. It gets especially bad when morality is used because from the perspective of something as uncaring as an economy there are no meaningful morals, they are all made up. I personally think the vast majority of economic problems are caused by modeling errors. The model we use to look at the real economy is too rigid to represent it.

The laziest way to explain the rigidities is to just blame someone else, most of the time governments. However, getting rid of goverments doesn't seem to get rid of all rigidity because, as it turns out, our physical world is constrained by more than just politics. What's often forgotten is that governments can also fight against natural forces that reduce flexibility in the economy. Therefore the answer is neither more government or less government. No it's the usual boring answer. What we need is better governments. It's like a supply and demand situation. There is demand for a certain size of government and the supply is often either too high or too low. The goal is to find a balance.