Not only are group-rationality failures far less frequent in the market than in government, in the market such problems contain the seeds of their own solution, thanks to entrepreneurship and the profit motive. Hence, I propose that we stop talking about market failure.
Friedman’s example from warfare was interesting, as was the prisoner’s dilemma, and the entire article too.
Also, the new and better term for “market failure”, namely “group-rationality failure", is cool. So is winning some support for the free market.
I’m writing a (very) short story titled Jack’s Adventures In The Land Of Oz. The first section describes how the economies of the West will get so huge that the governments will come to the private sectors, fall humbly upon their knees, admit their incompetence, ask forgiveness for past transgressions, and beg for help in running the West
The second section of my story celebrates the year 2020, when “the people” in America, later refered to as “the disgusted masses”, finally got tired of “Big Government” and used the electoral process to force Barry & Kind to get jobs in the Private Sector. Washingotn D.C. was renamed. Its now known as “Free Markets, D.C.” LOL
Thought For Today: America succeeds economically in spite of the government and the Private Sector /grin … (Could it be that the Sovereign God is actually in control of those two power mad entities, and manipulates both, for better ends than either “Barry or Gordon” intend by their shenanigans!)
Barry vs. Gordon LOL
“Greed, for lack of a better word, is good”__Gordon Gekko
“I got roasted the other night. A friend of mine asked, ‘Why are we honoring this man? Have we run out of human beings?’”__Gordon Gekko
We know what Barry would tell you, so no “Barry quotes” are needed. Just get out your wallet and open it up. LOL
TGIF in the title of the OP’s article? Thank God Its Friday, I assume? (Sheldon Richman wrote it today which is a Friday)
Am I allowed to throw them both to the flames?
/grin … You can, but they are more useful as “pawns” to be manipulated like a wise Grand Chess Master would use his pawns to win his planned victory, and in this Grand Humanity Project the victory plan is predestined inevitable progress, as certain as if it had already been realized.
We have advanced from say the 10th century to where we are today, and the 10th Century (and all other centuries) was packed with counterparts to Barry and “Gordon” (different formats and forms, but same vanity and arrogance.)
In the 26th Century, when its a giant money-maker to build Sam’s Club Super Stores 1000 yards apart, and America has a 326 trillion dollar economy , some few historians, who specialize in history’s banty roosters, will be digging up stuff on Big Government Grandees and the “Gordons” of the primitive 21st Century, and they’ll smile with amusement at all of them, and smirk at their banty rooster vanity and arrogance in the face of General Time and his top battlefield commander General Death, a real go-getter.