Answer to Krugman on Market Failure: Government Failure Is Worse
February 25, 2015
News Article
Answer to Krugman on Market Failure: Government Failure Is Worse
Also published in Forbes Tue. February 24, 2015.
Most introductory economics textbooks have a section on “market failure.” It is here that students learn that markets may fail to achieve their potential—leaving people worse off than they theoretically could be. The existence of market failure is often taken as an excuse for government intervention to do whatever markets fail to do.
This is also one of New York Times columnist Paul Krugman’s favorite topics. For example Krugman writes:
