David Henderson introduces Richard McKenzie’s new EconLib essay – one that exposes the errors that can be caused by presuming that the task of understanding reality involves little more than sticking with pedestrian observations and prejudices .
History is full of examples of privately supplied roads and education, not to mention more difficult cases. The existence of a collective-action problem is not a sufficient argument for government intervention. To believe otherwise is to ignore the creative and imaginative capacities of individuals engaging in private collective action to overcome collective-action problems.
John Taylor, writing in the Wall Street Journal, explains that the problem is extreme policies rather than extreme people . And Taylor here ably counters Paul Krugman’s disagreement with crucial parts of Taylor’s essay .
Private individuals, households, and firms could never get away with behavior so wasteful and perverse as that which government routinely gets away with. Maxim Lott has more .