I need help

[tnu]

Can somebody assist me? This guy is talking about market failures and how they jsutify government action and such and market failrues are an area in which I have very little experience.

http://198.23.133.113/view.php?post=78791

[dallen68]

Well, unfortunately, there's so many posts on that page (none of which are numbered), that it's difficult to isolate which one is being refered to. Also, unfortunately (for this discussion, not actual life) most people do not have all that much experience with market failures. (Experience with the side effects, yes, experience with the dynamics involved no.)

Anyhow, at the very best, government action on these matters is like a Band-Aid. The only purpose it (usually) serves is to preserve (something) that should be allowed to pass on. It also happens to not be particularly beneficial that most people form their opinions of such matters on partial truths. For example, if you're reading a freshman sociology text, you're highly likely to read something about how prior to the 1930's or so, many people worked in factories for non-living wages. From there we jump to "and so minimum wage was invented to protect the weak." I guess we're supposed to ignore the facts that, A) The factory had set the wage at a level it could sustain while offering a product at a price people were willing to pay. B) That most of those in such positions were first time, or young workers who were actually being supported by others (mostly parents), and C) 1. Once the minimum wage was in place, many people were (and are) priced out of the job market, depriving them of what support they did have, C) 2. In a few cases, the factory itself was forced to shutter it's doors because it could not sell it's product at a price that would both cover the mandated wage and be in an acceptable wage for its customers.