I blame the Market! No wait… the Government!

The Free Market economic system isn’t perfect, and suffers from a variety of different failures eg. Income inequality, demerit goods, environmental issues (negative externalities) . That’s why countries have a Government – to correct these market failures. But hold on! What happens if the Government fails? Who do we point the finger at now? The Market, or the Government?

market and government failure

5 market failures

Krish

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s