The Darwin Economy

In 'The Darwin Economy,' Robert H. Frank challenges the traditional libertarian view of economics by arguing that Charles Darwin's principles of natural selection provide a more accurate model for understanding economic competition.

Frank contends that the 'invisible hand' of Adam Smith often fails in cases where the value of goods is relative rather than absolute, leading to collective action problems and market failures.

He proposes policy changes, such as consumption taxes and 'sin taxes,' to address these issues and promote a more equitable distribution of wealth.

The book highlights examples of 'positional consumption' and how individual self-interest can harm the community as a whole, drawing parallels with biological phenomena like runaway sexual selection.