Collateral public good (was Re: [extropy-chat] Noisy future day etc..)

[Mike Lorrey]

--- Brett Paatsch <bpaatsch at bigpond.net.au> wrote:

> Hal Finney wrote:
> 
> > Robin writes:
> >> Problem is, the sort of markets can't generate enough revenue to
> >> pay such a high cost.  So the idea is to bring down the cost.  The
> >> lower the cost, the more chances a market can pay that cost.  And
> >> so the "more" legal such betting becomes.
> >
> > Part of the problem is that the benefits of the market are
> distributed
> > and do not return only to its creators.
> 
> I don't see that as necessarily a problem Hal. Why do you?
> 
> I'm beginning to wonder if *I* am mistaken, or if those that are
> also interested in the futures market idea don't fully realise what
> the potential is.
> 
> >  Anyone who can see the market
> > prices gains value from this information about the future.  In that
> sense,
> > running a futures market is a public good.
> 
> I could accept a little collateral public good. Hey call me old
> fashioned.

That any market provides positive externalities to all doesn't make it
a public good. Hal seems to be slipping into some marxist bogosity
here.

ANY free economic exchange provides benefits to all involved if all are
looking to maximize their rational long term self interest.

The presence of NYSE benefits a lot more people than just the owners of
broker seats on the exchange, pretty much everyone benefits from its
existence. That doesn't make it a public good.

A public good is something which cannot pay for itself without the
state using its authority to make everyone 'pay their fair share'.

=====
Mike Lorrey
Vice-Chair, 2nd District, Libertarian Party of NH
"Necessity is the plea for every infringement of human freedom.
It is the argument of tyrants; it is the creed of slaves."
                                      -William Pitt (1759-1806) 
Blog: http://www.xanga.com/home.aspx?user=Sadomikeyism


		
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