As previous sections have illustrated, economists tend to be divided over the question of
state intervention in the workings of the market economy. Free marketers generally argue
that in a dynamic economy problems such as spatial disparities in income, output and
employment are usually short term and will eventually be corrected by market forces, as
firms and individuals acting rationally seek to improve their positions within the economy
(see Figure 11.2). For the firm, for example, an area with high unemployment and
lower wage costs (area A) will be commercially attractive and this will cause businesses to
migrate to such locations in search of cheaper labour.7 At the same time individuals will
tend to be keen to improve their job and wage prospects by moving to a more prosperous