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What about cases where the free market is known to poorly allocate resources? I'm talking about negative externalities and public goods. As a concrete example,
by dontreact 10y ago
What about cases where the free market is known to poorly allocate resources? I'm talking about negative externalities and public goods.
As a concrete example, take regulation regarding pollution that is known to be harmful to humans and therefore have a large cost. The free market will not generally take this cost into account.
- marcrosoft 10y agoIf the public majority want to favor the environment over cheap rides that's fine. I just want the public to decide unanimously with their dollars. If pollution becomes a large enough problem to sway the public at large to reallocate their dollars I firmly believe they will react in each individual's best interest.