[T]here is no such thing as “market failure.” Like the unicorn, it doesn’t exist.Market failure? As Woiceshyn concludes, "anyone who makes the charge of 'market failure,' should be charged with 'intellectual failure'."
To say that something failed means it did not meet a standard that it was designed to or capable of meeting. For example: “a valve failed to open” or “a student failed a math test.” The free market refers to a group of people involved in the voluntary exchange of goods and services. It presupposes that each individual participates to pursue his or her rational self-interest and that a government exists to protect individual rights, including property rights. It’s based on the recognition that everyone can benefit from division of labor and free trade.
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.”
. . . if the activities of some people harm others, such as harmfully pollute their water or air, and if the harm can be objectively proven (a concept foreign to environmentalists), then it’s the government’s failure to protect individual rights—not “market failure.” And a tax on emissions is not a valid solution, because it implies that it’s okay to violate rights as long as you pay government for the privilege.
LINKS: 'Market failure' doesn't exist - Capitalism Magazine
TAGS: Economics, Nonsense