Shahab Sabahi
Energy and Environment for Development – Policy Analysis Research Group
On Sep 18th, 2011, in his joint blog with R. Posner, G. Becker compared market failure with government failure. Writing as usual, he again built his argument over a fusion notion made up over a large range of ideologies. His fusion notion has the neoclassical, altruistic, liberal, anti-self interest elements. He argues that “……actual governments would not necessarily do what economists and others had wanted them to do because there was government failure as well as market failure. Before recommending government actions to correct market failures, one should consider whether actual government policies would worsen rather than improve private sector outcomes. Since many factors often made for considerable government failure, considering such failure would be crucial and not just a theoretical fine point…” and he concluded “…This belief is based on the conclusion that, on the whole, government failure is far more pervasive, damaging, and less self-correcting, than is market failure. Others may reach different conclusions, but these are the problems that a relevant welfare analysis should focus on. Simply concluding that in particular instances markets are not working perfectly is a misleading and incorrect basis for supporting active and sizable government involvement.”
So he left readers again with a big question mark “so if government intervention, in big scale, is not an appropriate solution and others should focus their welfare analysis on practical way-out that so far failed to recognize and market long fails to do self-correcting its flaws and its inefficient performance, HOW LONG WOULD this welfare analysis take OTHERS to come up with ONE PRACTICAL solution for fixing market failures and help out societies? Perhaps there have been some structure flaws and fundamental problems with MARKET itself?
Contrary to Dr. Becker’s doctrine that reads “ Ideas are held to be endogenous, that is, they are created after the fact to justify material interests rather than being independent causes of social behaviour” , ideas are matter, come first and are primary both as motivators of human action and as sources of social changes.
Both Government and Market are social institutions which were evolved to support human social life. They both originate from an identical and unique human idea. They both emerged long time ago and have survived together and feed each others. It is wrong if one thinks GOVERNMENT is as a separate entity from MARKET.
The world experiences enormous changes in each second. If their malfunctions have been surfaced, simply one should search the cause in the source of idea and its consequent institutional structures. Perhaps it is time to radically change our old fashion ideologies.
So he left readers again with a big question mark “so if government intervention, in big scale, is not an appropriate solution and others should focus their welfare analysis on practical way-out that so far failed to recognize and market long fails to do self-correcting its flaws and its inefficient performance, HOW LONG WOULD this welfare analysis take OTHERS to come up with ONE PRACTICAL solution for fixing market failures and help out societies? Perhaps there have been some structure flaws and fundamental problems with MARKET itself?
Contrary to Dr. Becker’s doctrine that reads “ Ideas are held to be endogenous, that is, they are created after the fact to justify material interests rather than being independent causes of social behaviour” , ideas are matter, come first and are primary both as motivators of human action and as sources of social changes.
Both Government and Market are social institutions which were evolved to support human social life. They both originate from an identical and unique human idea. They both emerged long time ago and have survived together and feed each others. It is wrong if one thinks GOVERNMENT is as a separate entity from MARKET.
The world experiences enormous changes in each second. If their malfunctions have been surfaced, simply one should search the cause in the source of idea and its consequent institutional structures. Perhaps it is time to radically change our old fashion ideologies.
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