Thursday, June 22, 2006

"Market Failure" Doesn't Exist

"A free market doesn’t guarantee that an individual will act in rational self-interest—errors are possible—only that he or she is free to do so. If a person fails to act as such, then it’s the person’s failure, not “market failure.” A free market can’t be expected to do what’s metaphysically impossible, such as make everyone equally wealthy regardless of ability and effort, or turn sloth into gold. If a person expects a bicycle to fly, and it doesn’t fly, then it’s not a “bicycle failure” but a mind failure."

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