A Quote by Eric Maskin
The market doesn't work very well when it comes to public goods.
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If I buy a car, I use the car, you don't, and the market for cars works pretty well. But there are many other sorts of goods, often very important goods, which are not provided well through the market. Often, these go under the heading of public goods.
I think socialism is really about recognizing that there are limits to what the market can do. The market is very useful; at times it works very well, but it doesn't always work.
Care work produces public goods, and should be supported in families by policies such as paid parental leave and caregiver tax credits, and by investments in good training and wages for caregiving, including early childhood education, in the market.
Markets work well with goods that economists call private goods.
The public has been sold a bill of goods about the free market being a panacea for mankind.
Modern 'public health' initiatives have moved well beyond what could reasonably be classified as public goods. Today, government undertakes all sorts of policies in the name of public health that are aimed at regulating personal behavior.
I think that markets classically fail in cases where there are public goods that provide benefits that people cannot capture. The big debate is how big these public goods are, where they exist, things of that sort.
I like the PC market. It's a big market, but it's a very volatile market as well.
Money is the general medium of exchange. It is the thing for which all other goods are traded, the means of final payment for such goods on the market.
Whatever market for manufactured goods emerged in colonial and dependent countries did not become the "eternal market" of these countries. Thrown wide open by colonization and by unequal treaties, it became an appendage of the "internal market" of Western capitalism.
I have read a great deal of economic theory for over 50 years now, but have found only one economic "law" to which I can find NO exceptions: Where the State prevents a free market, by banning any form of goods or services, consumer demand will create a black market for those goods or services, at vastly higher prices. Can YOU think of a single exception to this law?
What we mean by an outcome will naturally depend on the context. Thus, for a government charged with delivering public goods, an outcome will consist of the quantities provided of such goods as intercity highways, national defense and security, environmental protection, and public education together with the arrangements by which they are financed.
Globalization, meaning the global expansion of a market economy, is the only way we can guarantee widespread prosperity and peace. A lot of nations are just so small, that unless they can sell their goods and services on the market they're never going to develop, they don't have an internal market that's big enough to sustain anything.
In a community where public services have failed to keep abreast of private consumption things are very different. Here, in an atmosphere of private opulence and public squalor, the private goods have full sway.
The current market cost for a space flight, about a week in space and about six people have gone with the Russians so far to the International Space Station; it costs about $30 to $35 million. So, it's not for the faint of heart. But our own market studies that we've commissioned as well as some public market studies all indicate that there are somewhere around 20 or so individuals every year who have both the means and the interest to do this. So, the market is definitely out there.
We must continue to liberalise the single market, cut red tape and basically create a digital single market. We have not completed the single market yet, there is not sufficient free movement of goods, labour, services and money. We have to keep on working at that against all the protectionist tendencies that we have right now.
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