Final answer:
The Mississippi bubble was a financial scheme that led to a speculative bubble and ultimately a huge crash. John Law's decision to create the bubble was based on faulty economic theories and personal gain, causing widespread financial ruin and detrimental effects on the French economy.
Step-by-step explanation:
Based on what we learned about the Mississippi bubble, John Law's decision can be seen as unjustified. The Mississippi bubble was a financial scheme that led to a speculative bubble and ultimately a huge crash. John Law, as the main proponent of the scheme, falsely inflated the value of French trading companies, causing many investors to lose their fortunes. The bubble burst and resulted in a major economic crisis in France.
Law's decision to create the Mississippi bubble was based on faulty economic theories and his own personal interests. He believed that the scheme would help boost the French economy and make him and his associates wealthy. However, the scheme was built on false promises and unrealistic expectations, leading to its inevitable collapse.
In hindsight, it is clear that John Law's decision was not justified. The Mississippi bubble caused widespread financial ruin and had a detrimental effect on the French economy. It serves as a cautionary tale about the dangers of speculative bubbles and the importance of making decisions based on solid economic principles.