John Hasnas on the Failure of the Market Failure Argument

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John Hasnas on the Failure of the Market Failure Argument

On Wednesday, May 22, in Los Angeles, Georgetown University's John Hasnas spoke live from ReasonTV's Headquarters about the failures of "market-failure" arguments so often used by bureaucrats to justify government regulation. He explained why he believes that the internal regulatory mechanisms of free markets prove to be far more powerful than anything that politicians can attempt.

About 23 minutes

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Comments

[robc]

Markets cant fail.

Its axiomatic and tautological. Whatever the result of the free market is the result of the free market.

Because a market isnt a thing with goals or whatever. It can neither succeed nor fail, it just is.

[triclops]

You sound like one of them "evolutionists", talking about no goals and other such hokum.

It is very simple. If markets exist in any form, no matter how distorted, and utopia does not exist, then the market has clearly failed.

[OldMexican]

Re: triclops,

If markets exist in any form, no matter how distorted, and utopia does not exist, then the market has clearly failed.

You're begging the question. Utopias cannot exit by definition since they're supposed to be ideal worlds.

[jerrydonald045]

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[Scarecrow Repair]

I suppose you'd deny that gravity can fail, that when someone slips on a banana peel, or a monster truck lands on its roof, the gubmint shouldn't step in and correct the gravity failure with government regulation.

[Almanian!]

hear hear!

Damned gravity.

[Scarecrow Repair]

Mine was a serious comment. You have illustrated gravity failure.

[Killazontherun]

People die all the time, and that, of course, is the result of market failure. The market is such a ruthless leviathan that even the best intentions put into action buy our government, like Obamacare, for instance, can't prevent it from happening. At best, we can sooth that feeling of alienation and feel better about ourselves and our society and be light givers for the greater cause.

[Killazontherun]

'buy'

Those homophones will fuck you in the butt, every time.

[Scarecrow Repair]

No no, your subconscious had it right the first time. Always go with your instincts.

[robc]

Im only 2:42 in and Im already wanting to chant "Coase Coase Coase"

[WomSom]

Sometimes man, you jsut have to roll with ti.

http://www.GetYourAnon.tk

[WomSom]

Ive got to admit I like where they are going with this. WOw.

http://www.GetYourAnon.tk

[Austrian Anarchy]

I think it was Walter Block who mentioned in passing in a few videos the forensic analysts during the gilded age who went around tracking sources of pollution so that regular folks could sue, and win, against enterprises that soiled their land or water. Dr. Block mentioned that those suits abruptly stopped, and it had some relation to American (courts or legislation?) wanting to "help" American industry compete with British industry. Still looking for more detail on that.

That same field never went away. After the BP spill, every tar ball that came ashore from Coney Island to Rio got tested and, of course, most turned out to be unrelated to the BP spill.

[Scarecrow Repair]

New York City had informal squads of smellers in the 1800s, sniffing out pollution. Don't remember the details, or why they stopped; probably because government didn't want amateurs making it look bad, and because they saw an opportunity for expansion.

[Austrian Anarchy]

What Block was talking about sounded much more scientific, and if I am not imagining it, Richman and maybe even Friedman mentioned it in videos too.

Block for sure mentioned it in the context of laundry on the line soiled by pollution and people could be hired to find out exactly whose soot was on their clothes and win damages.

[Almanian!]

"About 23 minutes." tl;dl

MARKET FAILYOOR!!!11!

[earlstabile88]

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[lap83]

Market failure is when businesses make profit and people have to work for money.Communism, however, never fails. Even when millions starve or can't get basic things like toilet paper.

[Austrian Anarchy]

The only reason why luxury items like that are in short supply is because of hoarding by wealthy cabals. I heard it in a story about post-Chavez Venezuela, so it must be true.

[VG Zaytsev]

I was a little disappointed because most claims of market failure do not revolve around externalities and civil tort actions are not the internal regulatory mechanisms of free markets that are far more powerful than anything that politicians can attempt.

Although, he is correct on both.

[VG Zaytsev]

Should be that he is correct that civil tort actions are far more effective at dealing with externalities than regulatory action or direct legislation.