[ExI] Economic Calculation Debate/was Re: The End of the Future

[BillK]

On Wed, Oct 5, 2011 at 3:29 PM, Dan wrote:
<snip>
> * Note: my claim is not that non-government folks are angels, saints, or geniuses at economic forecasting.
> They are not perfect or of a different species than those in government. But those in government are no better
> still and face two additions problems: they have little incentive for success or against failure as, for the most
> part, they can shift costs to others as a matter of routine, and they face information problems that markets
> solve ex ante -- even if such solutions are not perfect.
>
>

That sounds pretty much like what I wrote.

There are government failures and there are market failures and it is
hard to tell which is worse.

Markets (note - not the mythical free markets) routinely ignore
externalities like pollution, slave labour, etc. and really like
monopolies and cartels. Though many market failures are not as obvious
as big government projects gone wrong. And, of course, many of the
government failures are contracted out to private companies that
immediately proceed to rip off the government for as much as they can
get away with.


BillK