The Negatives of Market Failure

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Donna Brazile: I would have more confidence in their judgment if they gave evidence that they actually understand how markets work. She says the language is often couched in market failure terms. "I think a lot of this language reveals that these people don't really understand the way the market works," she says.

Why is it that people in large cities like Paris or New York City people sleep peacefully, unworried about whether there will be enough bread or other necessities available for purchase the next morning? No one is in charge--no bread czar. No flour czar. And yet it seems to work remarkably well. Don Boudreaux of George Mason University and Michael Munger of Duke University join EconTalk host Russ Roberts to discuss emergent order and markets. The conversation includes a reading of Roberts's poem, "It's a Wonderful Loaf."