Beware: The Government Is People

Nearly everyone complains about capitalism's defects, or market failures. In fact, those are social failures, not specifically market failures, which show up when many rational individual actions create a social situation that displeases everyone. This means that government dirigisme -- state direction or displacement of the market -- cannot be a remedy because who do you think staffs the government and how do they get there? A big difference between the two systems -- market and state -- is that while the market diminishes social defects, the government magnifies them.

TGIF: The Myth of Market Failure

When I say that market failure is a myth, I don’t mean to deny that ... regrettable situations can occur. I only mean to deny that they are peculiar to the market.

Read: "The Myth of Market Failure."