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Market failure



When they hear it said that capitalism had its chance and has failed, let them remember that what ultimately failed was a mixed economy, that the controls were the cause of failure, and that the way to save the country is not be making it swallow a full unmixed glass of the poison that was killing it.

   --  Ayn Rand

Difference between government and market failure


There may be market failure, but markets adjust.
Government has just as much failure, except there is little correcting mechanisms for this.

The free market is not a perfect system. You are supposed to have failures in the free market.

I'm having a hard time finding market failure in the mounds of government failure. If someone could point out where the market failed I would appreciate it. As I understand the market economy, the market punishes poor decision making with failure. When enough businesses fail due to poor decisions, we have a crisis. The market fails when it doesn’t punish poor behaviour. On the other hand, it the state prevents the market from punishing bad behaviour, then why blame the market? The market has no power over the state, but the state has enormous power over the market. 
You don’t have to convince conservatives of the benefits of charity. The left insists on excluding charity from the dialog, not conservatives. Every survey of charitable giving I have seen shows that conservatives do almost all of the charitable giving. Socialists despise charitable giving partly because the “social justice” crowd thinks the poor have been robbed and the state owes them reparations, and partly because socialists just want to see the scope and power of the state increased everywhere and will use any excuse. So they promote the fiction that if the state doesn’t help the poor, the will starve.
http://blog.acton.org/archives/9716-market-and-government-failure.html
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