Market Failures, Government Solutions, and Moral Perceptions

Posted: 21 Dec 2014

See all articles by J. R. Clark

J. R. Clark

The University of Tennessee at Chattanooga

Dwight R. Lee

Southern Methodist University (SMU) - O’Neil Center for Global Markets and Freedom

Date Written: 2013

Abstract

In this article, the authors criticize the expansion of government to correct market failures. Primary focus is given to the moral aspects of free enterprise and government expansion, with the authors criticizing the notion that markets are inherently immoral and propelled by self-interest while government generally acts for the public interest. They distinguish between magnanimous and mundane morality, noting that while the former holds more emotional cache, the latter, as explained by political theorist Adam Smith, can actually bring about general well-being through the promotion of self-interested market involvement.

Suggested Citation

Clark, Jeff R. and Lee, Dwight R., Market Failures, Government Solutions, and Moral Perceptions (2013). Cato Journal, Vol. 33, No. 2, Spring/Summer 2013. Available at SSRN: https://ssrn.com/abstract=2540683

Jeff R. Clark (Contact Author)

The University of Tennessee at Chattanooga ( email )

Department of Economics
Suite 313 Fletcher Hall
Chattanooga, TN 37403-2598
United States

Dwight R. Lee

Southern Methodist University (SMU) - O’Neil Center for Global Markets and Freedom ( email )

United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
324
PlumX Metrics