Why do economists think market in equilibrium is a good thing?
Equilibrium means stability. Stability assumes the commoditization of products, which assumes a basic, as opposed to extraordinary, profit (or minimized losses as in a monopolistic competition, where there are too many firms and they are fighting for market share in hopes that less efficient or undercapitalized firms will drop out, leaving more of the pie for them, which is a disequilibrium too). Equilibrium is, therefore, calm instead of chaos. Equilibrium is comparatively equitable dealings for all, although this is a normative thing. As previously suggested by others, an economy is simply what it is, and is not necessarily either good or bad. It is descriptive, like a factual weather report. We add the nuances that say if rain is good or bad or warmth is “normal’ or not based on averages or someone’s subjective comfort level. Still, under most ethical and moral norms, market equilibrium is good because the picture is not in flux. When in flux, some people are placed at a disadvantag
