Re: Katrina and the Evacuation: Market Failure?
(I tried to send this on September 7 from my other account; didn't notice until now that it was rejected for that reason.) Michael Giesbrecht wrote: . . . I am engaged in arguments with people who are claiming that after the regional government threw in the towel and told everyone to fend for themselves, that what then transpired was a good indication of how markets respond in general. . . . They said similar things about the Rodney King Riots of 1992: when the police fled, the resulting violence was "what we can expect in anarchy." Never mind that the police actively suppress any private institution that could take their place. ( http://en.wikipedia.org/wiki/1992_Los_Angeles_riots ) -- Anton Sherwood, http://www.ogre.nu/
Re: Katrina and the Evacuation: Market Failure?
--- Michael Giesbrecht > ... I am engaged in arguments with people who are claiming that after the regional government threw in the towel and told everyone to fend for themselves, that what then transpired was a good indication of how markets respond in general.< That's like saying that when a human being captures a coyote and feeds it for several months, and then lets it go, at which time it does not go back to the woods and hunts, but stays by the house waiting to be fed, one can then conclude, "See? Nature fails! Coyotes can't survive on their own." Society has been captured and fed by government, so if government suddenly lets go, we can't just conclude that the result is the usual market response. > the moral obligation of everybody doing what they can to help the greatest number of people reach safety was not approximated by the market response.< That moral obligation does not exist, other than in personal and cultural ethical views, which are not universal moral imperatives. The universal ethical obligation is to avoid harming others. Doing good to others is morally good, but the avoidance of doing such is not a moral evil, by the universal ethic. Voluntary human action does in fact do much to help others. But to do so in an emergency requires a pre-existing institutional structure, with coordination by voluntary charities such as the red cross. But governments have pre-empted the central functions of emergency aid, leaving voluntary help to peripheral even though important aspects of rescue. Fred Foldvary
Re: Katrina and the Evacuation: Market Failure?
Thank you to everyone for your replies. My depth of understanding is not that great without you folks. > > The government (local, State, and > Federal)appropriated responsibility for the > Mississippi River levy system, the drainage systems, > the pumping systems, the road ways, and the bridges, > but apparently, they left it to the market to provide > the service of evacuating the poor and the infirm.< > > --- Michael Giesbrecht > > Why do you think so? > > The federal government is being blamed for not > sufficiently preparing and executing evacuations. > This implies the general belief that this too is the > responsibility of government. Governments have > appropriated the means of evacuation, such as > highways, public transit, and military resources. > > > is this an example of market failure? > > No. The market is not operating in transportation and > in emergency services, as it has been pre-empted by > government. Only when the highways, public transit, > and emergency services are voluntarized would the > market be culpable. > > Today, everybody expects the cavalry that trots to the > rescue to be governmental. > > Fred Foldvary I'm in agreement with you, Fred. But I am engaged in arguments with people who are claiming that after the regional government threw in the towel and told everyone to fend for themselves, that what then transpired was a good indication of how markets respond in general. That is, those who could afford to purchase transportation made it to safety, in rental cars that were not filled to capacity, and thus, the moral obligation of everybody doing what they can to help the greatest number of people reach safety was not approximated by the market response. Best regards, Michael Giesbrecht
Re: Katrina and the Evacuation: Market Failure?
> The government (local, State, and Federal)appropriated responsibility for the Mississippi River levy system, the drainage systems, the pumping systems, the road ways, and the bridges, but apparently, they left it to the market to provide the service of evacuating the poor and the infirm.< > --- Michael Giesbrecht Why do you think so? The federal government is being blamed for not sufficiently preparing and executing evacuations. This implies the general belief that this too is the responsibility of government. Governments have appropriated the means of evacuation, such as highways, public transit, and military resources. > is this an example of market failure? No. The market is not operating in transportation and in emergency services, as it has been pre-empted by government. Only when the highways, public transit, and emergency services are voluntarized would the market be culpable. Today, everybody expects the cavalry that trots to the rescue to be governmental. Fred Foldvary
