The problem with a totally free market arises when the incentives are incorrect or people do not act rationally.
Posted by
pmb (aka pmb)
Dec 8 '09, 12:29
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Unfortunately climate is one of those areas where the incentives (a cleaner, safer planet) are not viewed as immediate enough to warrant extra costs. The incentives aren't immediate enough and greed (as we've seen) can favor short term over long term so there is a loss of long term rationality. So that's where government has to play a role. The same is true with healthcare. Insurance company incentives are just not in line with the need for healthcare. I am a strong believer in the free market, but it's a mistake to think it can solve everything.
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