Sunday, May 02, 2004
Market failure: Take 1. When one types "market failure" in google image search then almost all of the images are some silly graphs as if one can discover the truth of true market failures by drawing a few lines on a paper.
Market failure: Take 2. Castro virtually abolished the private market in Cuba with disastrous results. A country that was one of the richest in the region in 1958 is now one of the poorest. The underground market in Cuba prevents the total collapse of the Cuban economy. Honourable people collect dollars by serving tourists in a variety of ways in order to prevent starvation. That is a true market failure: the market should go on strike and let the empire fall. She keeps the economy afloat but she should be studying medicine or whatever she would be doing in a free economy.
Market failure: Take 3. Remember watching on tv the Argentinian pot-banging people took to the streets in protest against the government. This is what happens when one spends too much money. No dollar-peg, government bonds (with the dollar-peg they resorted to printing bonds) or IMF loans can prevent the inevitable. This is what happens to individuals who spend more than they can earn but unlike governments, no one believes the individual when he blames everyone but himself for his misfortunes.
Market failure: Take 4. This is the source of the largest market failure in history. This should be a picture of his brain but it is not available although a detailed description of the brain does exist. This is where people should look for market failures. The stupidity of politicians and intellectuals is the real cause of the true market failures. The only market failures are when someone poisons, kills or puts chains on the market.