Why Government Pollution Control Fails
6 HOURS AGOTimothy D. Terrell
In over twenty-five years of teaching undergraduate students, I have heard the same refrain countless times: free markets have many problems that government has to step in to solve. Indeed, students expect government to “step in” so much that markets occupy a peripheral role in their idealized economic system. Even students with an ideological predilection toward markets will be quick to argue that certain problems, such as pollution, require extensive government regulation and probably copious spending of tax dollars.
This is not surprising, given that college students have been bombarded by tales of government fixes for social problems from media, teachers, and parents from elementary school onward. By the time they hear about “market failure” in their first economics class, it doesn’t take much convincing that free markets are impractical at best and a weak rationale for capitalist exploitation at worst. The best-selling economics textbooks at the university level do little to counter these perceptions, and most instructors won’t deviate much from the mainstream books.
Most principles of microeconomics and intermediate microeconomics textbooks devote at least one chapter to market failure, which typically includes “market power” (think monopoly), inadequate provision of “public goods” (goods that the private sector allegedly won’t produce enough of because of an inability to make the users pay), and “externalities” (the unintended side effects of human activity on bystanders, like pollution). While textbooks usually contain some acknowledgment of the fact that governments don’t live up to idealized models of efficiency, it is rare for proportional space to be devoted to “government failure” and easy for students to conclude that government intervention is the answer to these nearly ubiquitous shortcomings of markets.
The Apologists for Environmental Regulation
https://mises.org/wire/why-government-pollution-control-fails
