Milton Friedman - Market Failure

Before attempting to correct market failure, consider the possibility of government failure. http://www.LibertyPen.com

Source: Milton Friedman Speaks
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  News & Politics

[Dontwantlove]

By the way, doesn´t anybody else find it ironic that people are discussing the supposed "failure of the free market" on Youtube?..

[Felhaven]

If the market cannot supply a good then it cannot do so because the demand for the good is not high enough to justify the cost.

[uuuuuhhhmmmmmmm]

as useful, and if they perceive the benefits outweighing the opportunity cost of placing another politician into office, they will vote for that politician.

[uuuuuhhhmmmmmmm]

Once again, you're overlooking basic facts. Where does support come from? From a desire fulfilled, of course; no matter how false the context of the desire may be, the fact is politicians are voted into office because they promise to fulfill a want of the voting public. They are voted into office again because people "perceive" (key word) that the politician has fulfilled his promise. It doesn't matter how informed or how useless the products actually are, if the voting public perceives them

[Kyong Kim]

to make themselves look good.

For example, gov has been wasting money on 'green products' such as corn fuel and electric cars that cannot survive in market and not so green after all.

On top of that, politicians are not out there for public good.

Most voters are pretty uninformed. All you need for next election is a strong support group fueled with special interest and pet projects on your own district.

[Kyong Kim]

I see what you did there ;p

[uuuuuhhhmmmmmmm]

That is complete and total nonsense. The basis of support is derived from the demand for the thing in question. The purpose is to satisfy a real need of the voting public in order to attract its votes. If your assumption were true, politicians could simply mandate perceived meaningless services into existence and garner support none the wiser.

[Felhaven]

Not so.

The government does not operate on a supply and demand basis. The government only provides products and services at the behest of the politicians who stand to gain support from their production.

[uuuuuhhhmmmmmmm]

If sufficient demand did not exist for the good in question, the good would not be provided by ANY market or public entity, government or otherwise. What would be the purpose of supplying a good publicly, through government funding, that only a select few may ever wish to purchase or have access to?

[Dontwantlove]

???



[BoilingSnowCones]

This is a profound point. Thank you for pointing that out to myself and the rest of us.

[Dontwantlove]

What are you talking about? You are having a free, honest & democratic debate on Youtube, a site that is only interested in profit and self-interest. Where is the failure here?

..And by the way, freedom isn´t a tool.

I sincerely recommend you read Intellectuals & Society and Basic Economics. Both are by Thomas Sowell.