Economics is all about the study of scarcity and tradeoffs of which there are many. We know this because prices for different products are all different. Just because someone wants something doesn’t mean that it HAS to be available to them at their desired price point.
It is no more a failure of markets that resources are scarce than it is a failure of engineering that I cannot travel faster than the speed of light. Similarly, the fact that markets do not solve all problems is no more a problem with markets than the fact that modern medicine cannot cure all diseases is a problem with modern medicine.
-James Otteson (Seven Deadly Economic Sins)
I can get a car within a reasonable price point for me. I may even make tradeoffs in my life in order to purchase a care that is “out of my budget” if my desire is high enough and I have the funds to pay for it – but I won’t be able to purchase other things that I would like as well. Doesn’t matter to the market what MY situation is – I’m just not going to be able to afford that Lambo any time soon.
Often, Statists call this “market failure” when THEY believe that the dreaded “Market” doesn’t do what THEY want it to do. Their first reaction is to yell to everyone within earshot that the market isn’t working and therefore, will never work. They insist that Government would never be so bad at things.
Obviously, they haven’t spent time in their local DMV or dysfunctional Board or Commission meeting where members can’t even follow the Law governing themselves.
No one entity, nor a combination of entities, can solve every problem known to Man. Even if Government is a slow-moving sloth but the Market is as nimble as squirrels jumping quickly through the trees, neither is going to service all needs for all people at all times – scarcity sees to that.
The problem is that those yelling at the Markets have a scarcity of thinking things through to see why. They are also selfish in demanding that others fix the problem while not lifting a finger to do anything by themselves.
(H/T: Cafe Hayek)
