Form: Short Note

NO MARKET FAILURES?

Market Failure is a Propertarian Trigger Word

I am working on the Market Failure topic today. And I honestly can’t think of any that are not caused by positive actions of government.

Or the failure of the common law, because of it’s lack of independence from government.

Or a failure to prohibit free riding on commons, by requiring some form of contribution to the commons in order to benefit from it.

Or the interference of government in the suppression of dysgenic reproduction.

Or a failure to accept/acknowledge that dysgenia is the WORST POSSIBLE form of externality production.

I don’t make the argument government is unnecessary or undesirable. I make the argument that the law is the law and independent, and the production of commons is a competitive advantage, as long as it produces no dysgenic externalities.

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Types of market failure:

1) Positive externalities – Goods / services which give benefit to a third party, e.g. less congestion from cycling

2) Negative externalities – Goods / services which impose cost on a third party, e.g. cancer from passive smoking

3) Merit goods – People underestimate the benefit of good, e.g. education

4) Demerit goods – People underestimate the costs of good, e.g. smoking

5) Public Goods – Goods which are non-rival and non-excludable – e.g. police, national defence.

6) Monopoly Power – when a firm controls the market and can set higher prices.

Inequality – unfair distribution of resources in free market

7) Factor Immobility – E.g. geographical / occupational immobility

Agriculture – Agriculture is often subject to market failure – due to volatile prices and externalities.

#propertarianism