EconTalk Does Market Failure Justify Government Intervention? (with Michael Munger)
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Jun 17, 2024 Michael Munger, an economist at Duke University renowned for his insights on public choice theory, discusses the complex interplay between market failure and government intervention. He highlights the often-overlooked concept of government failure and questions whether interventions truly outperform market outcomes. Munger examines decision-making in healthcare, advocating for a balance between democratic values and expert governance. He critiques bureaucratic efficiency perceptions and emphasizes the need for innovative solutions beyond traditional government or market roles.
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Clown Car
- Michael Munger and Bill Keech carpooled in Keech's Mini Cooper, chosen for its adjustable front seat.
- Their simultaneous exit startled a passerby, who mistook the small car for a clown car.
Groping for Solutions
- The Cambridge Welfare School uses "groping" or experimentation to address government information limitations.
- They advocate for expert committees insulated from political pressures.
Bergson's Folly
- Abram Bergson believed knowing production functions and indifference functions would solve resource allocation.
- This assumes governments can know consumer preferences, which is unrealistic.