Learning From Mistakes

Don Boudreaux says it well: political power doesn’t cure it’s holders of bad judgment. But there is a difference between political power and market power. When market participants make mistakes, the mistakes are punished. Markets “fail”, but they correct themselves. Political power holders also make mistakes, but those mistakes often go unpunished and can perpetuate themselves for a long long time. People (sometimes) learn from their mistakes; so do market institutions. Political institutions, if they learn at all, learn very slowly.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: