Politics
Out of context: Reply #5639
- Started
- Last post
- 33,773 Responses
- lowimpakt0
I'm still not hearing any solutions from Tommyo or Designbot other that a vague "personal responsibility" and a vague "magic hand"
GENERALLY, there are a two rationales for government intervention in economic systems.
The first being Market Failure (neoclassical perspective) - The second being System Failure (evolutionary perspective)
What is happening is a massive convergence of market failures (combined with global system failures e.g. structured co-ordination, network failures). This would count as a rationale for state intervention. An important consideration is whether or not the state is able to rectify the situation. In lots of policy areas the role of intervention can be decentralised to other bodies, intermediary organisations etc. What we have at the moment is a global market failure which no decentralised organisation can deal with hence the level of global state intervention.
There are only certain circumstances where you allow the market to correct market failures and I would suggest these are when the market failure doesn't involve massive negative externalities.