Market Corrections Not Government Interventions

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But do these shifting views accurately reflect our knowledge about market and government performance? In this book, Clifford Winston examines the extensiveness as well as the persistence of government failures in the US economy and the potential for market corrections to address those failures. The choice of whether to recommend a market solution or a government intervention to address an economic or social problem is the eternal issue of public policy analysis. In this book, Clifford Winston examines the extensiveness and persistence of government failures in the US economy and the potential for market corrections to address those failures. Winston provides contemporary empirical evidence that strongly questions the effectiveness of government interventions, and he explores whether markets can self-correct to solve economic and social problems more efficiently. Government failures are defined and categorized, and the extensive evidence on government failures is synthesized and assessed. Theoretical explanations of government failure are evaluated and found to lack the ability to guide efficient policy reforms. Finally, empirical evidence is presented to show that, in contrast to government failures, markets have often corrected their failures. Winston concludes that when policymakers or academics are considering the efficacy of a market solution or a government intervention to address an economic or social problem, they should be more cognizant of the potential for persistent government failure and should account for markets’ ability to self-correct. Thus, Winston envisions a new perspective where market corrections, not government interventions, offer a path for improving the US economy. Clifford Winston is a senior fellow in the economic studies program at the Brookings Institution. He is the author or editor of several books, including Reforming Occupational Licensing in the US.

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Pagina's: 229, Hardcover, Palgrave Macmillan