Externalities and the State

Murray Rothbard and Ludwig von Mises argued that cases of negative externalities all turn out to be instances failure government enforce individual property rights adequately. This article goes beyond in claiming is far from the only way which gives rise externalities. Indeed, rather than requiring intervention remedy problems they cause, this argues most actions actually cause Looking at leads logical conclusion interventions are main obstacle markets’ attaining maximum social utility. The line reasoning leading as follows: (1) failures lead externalities; (2) market failures; ergo (3) failures. Specific whose externality-generating effects analyzed include taxes, subsidies, price controls, spending, monetary policy, prohibitions, income redistribution.