The “Market Failure” Fallacy

By Brian Simpson
Recorded January 31, 2008

In contemporary economics textbooks there is typically at least one chapter devoted to the topic of “market failure,” where it is claimed that capitalism leads to undesirable results, such as the creation of monopolies, harmful environmental effects, and an unjust “distribution” of income. In this talk, Brian Simpson attacks the notion of “market failure,” arguing for the moral and productive superiority of capitalism, the immorality and destructive economic consequences of environmentalism, and the need to integrate economic analysis with Ayn Rand’s revolutionary moral theory of rational egoism in order to properly defend capitalism.

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