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If a Pure Market Economy Is So Good, Why Doesn't It Exist? the Importance of Changing Preferences Versus Incentives in Social Change (Report)

The Quarterly Journal of Austrian Economics 2010, Summer, 13, 2

The Quarterly Journal of Austrian Economics

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Description

INTRODUCTION If a pure market economy is so good, why does it not already exist? If governments are so bad, why are they dominant throughout the world today? Indeed, is the widespread adoption of free markets ever likely to occur? Many recent authors, including Cowen (1992, 1994), Cowen and Sutter (1999, 2005), Holcombe (2004, 2005, 2007), and Rutten (1999) question the feasibility of a pure libertarian society. (1) They maintain that such a system cannot arise or persist because some people will always have both the incentive and the ability to use force against others. These authors offer several reasons why, even if society starts out in a perfect libertarian world without any states (as Rothbard [1996] and others advocate), competing groups will eventually form a coercive government. If we are lucky, this will be not too dissimilar from what we have today, but it could be even worse. Government may not be just or desirable, but "government is inevitable" (Holcombe, 2004, p. 333). (2) While these objections have been aimed specifically at radical libertarian ideas, they apply more broadly and are relevant to the general issue of social change.

If a Pure Market Economy Is So Good, Why Doesn't It Exist? the Importance of Changing Preferences Versus Incentives in Social Change (Report)
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  • 2,99 €
  • Available on iPhone, iPad, iPod touch, and Mac.
  • Category: Finance
  • Published: 22 June 2010
  • Publisher: Ludwig von Mises Institute
  • Print Length: 30 Pages
  • Language: English
  • Requirements: To view this book, you must have an iOS device with iBooks 1.3.1 or later and iOS 4.3.3 or later, or a Mac with iBooks 1.0 or later and OS X 10.9 or later.

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