22
Jul
2015
Tom DiLorenzo: “How I Came To Austrian Economics”
This was the opening lecture for Mises University. (I’m in Auburn, AL all week for this flagship event of the Mises Institute.)
Starting around the 12:00 mark Tom pays a nice compliment to David Friedman.
His point about “Market Failure” around 20:45 is basically same as what I said when we had that discussion a couple of weeks ago. Normal science has models and observations; but when the observations do something significantly different to the model that is seen as a shortcoming of the model, which needs improvement.
In economics there’s also a model (of perfect competition) and when the real world doesn’t match the model, that is “market failure” and implies we need more regulations to attempt to force the real market to be more like the economic model.
As Schiff would say, “Bass Ackwards!”
Tel,
I think there’s a straightforward way of translating market failure theories into the market process view. Here’s a recent post on it:
http://www.farmerhayek.com/2015/05/benefits-of-free-market-monopoly.html?m=1