Acton Institute Powerblog Archives

Post Tagged 'market failure'

The Reason Markets Fix Mistakes

Pro-market advocates often talk about how markets are self-correcting. But why do businesses in free markets fix their own mistakes? Because if they don’t, customers and other stakeholders will punish them: Lululemon, which produces yoga and other athletic apparel, provoked outrage from its devoted customer base when it released a flawed product earlier this year: see-through yoga pants. Continue Reading...

Market and Government Failure

An essay of mine appears today over at the First Things website as part of their “On the Square: Observations & Contentions” feature. In “Between Market and State,” I explore the dialectic logic of market and government “failure,” which functions in part to provide us with a false dilemma: our solution to social problems must lie with either “market” or “state.” I work out this logic in the context of the sub-prime mortgage crisis, and conclude that non-profits play a critical role as mediating institutions that are not driven in the first place by profit motives. Continue Reading...

Usury and Market Failure

When the sign for one of those payday lending stores went up on the corner a block away from my house, I have to say I was less than enthusiastic. The standard response in a market economy to “market failure” is for a nonprofit to fill the gap in services or meet the need. Continue Reading...