Market Failure Quotes & Sayings

All those evils which the [liberals] interpret as evidence of the failure of capitalism, are the necessary outcome of interference with the market. — Ludwig Von Mises

Most employees want to be involved in a successful business and most employees are happy for people running successful businesses to be paid a reasonable wage and a market rate for it, provided they understand the reason. What they hate most of all is pay for failure. — Stuart Rose

Climate change represents the greatest and widest-ranging market failure ever seen — Nicholas Stern

No one suggested Lehman deserved to be saved. But the argument has been made that the crisis might have been less severe if it had been saved, because Lehman's failure created remarkable uncertainty in the market as investors became confused about the role of the government and whether it was picking winners and losers. — Andrew Ross Sorkin

What vitiates entirely the socialists economic critique of capitalism is their failure to grasp the sovereignty of the consumers in the market economy. — Ludwig Von Mises

What went wrong? Well, comrades, when the American investment bank Lehman Brothers collapsed, it was not just a bank going broke, it was a political ideology going bankrupt. The failure of market liberalism. It ended decades of naive, uncritical faith in the market looking after itself. It does not! — Asne Seierstad

I believe that, in an ideal world, writers would feel free to write what matters to them without having to consider success, failure, the market, etc. — Claire Messud

Some economists became obsessed with market efficiency and others with market failure. Generally held to be members of opposite schools-freshwater and saltwater, Chicago and Cambridge, liberal and conservative, Austrian and Keynesian-both sides share an essential economic vision. They see their discipline as successful insofar as it eliminates surprise-insofar, that is, as the inexorable workings of the machine override the initiatives of the human actors. — George Gilder

All the cartoonists at heart liked him, and there was seldom or never anything bitter or really unfriendly in their portrayals of him; they were uniformly good-natured." Caricatures even transformed his failure during a mid-November bear hunt into a triumph, conjuring an image of the president steadfastly refusing to shoot a small bear furnished for the occasion. As renditions of the original Clifford Berryman cartoon proliferated, the bear dwindled in size until he appeared as a tiny cub, prompting toy store owners to market stuffed bears in honor of Teddy Roosevelt. Soon the Teddy bear became one of the most cherished toys of all time. — Doris Kearns Goodwin

All financial success comes from acting on a plan. A lot of financial failure comes from reacting to the market — Nick Murray

The Great Depression was not a sign of the failure of monetary policy or a result of the failure of the market system as was widely interpreted. It was instead a consequence of a very serious government failure, in particular a failure in the monetary authorities to do what they'd initially been set up to do. — Milton Friedman

When I was a young philosopher, I asked a senior colleague, Pat Suppes (then and now a famous philosopher of science and an astute student of human nature), what the secret of happiness was. Instead of giving me advice, he made a rather droll observation about what a lot of people who were happy with themselves seem to have done, namely:
1. Take a careful inventory of their shortcomings and flaws
2. Adopt a code of values that treats these things as virtues
3. Admire themselves for living up to it
Brutal people admire themselves for being manly; compulsive pedants admire themselves for their attention to detail; naturally selfish and mean people admire themselves for their dedication to helping the market reward talent and punish failure, and so on. — John R. Perry

The inability to envision a certain kind of person doing a certain kind of thing because you've never seen someone who looks like him do it before is not just a vice. It's a luxury. What begins as a failure of the imagination ends as a market inefficiency: when you rule out an entire class of people from doing a job simply by their appearance, you are less likely to find the best person for the job. — Michael Lewis

Not only do fossil fuel companies receive $775 billion to $1 trillion in annual global subsidies, but they pay nothing for the privilege of treating our shared atmosphere as a free waste dump - a fact that has been described by the Stern Review on the Economics of Climate Change as "the greatest market failure the world has ever seen. — Naomi Klein

The failure of market catallactics in no way denies the following truth: given sufficient knowledge the optimal decisions can always be found by scanning over all the attainable states of the world and selecting the one which according to the postulated ethical welfare function is best. The solution 'exists'; the problem is how to 'find' it. — Paul Samuelson

It is certainly tragic to see the failure of the most meritorious efforts of parents to bring up their children, of young men to build a career, or of an explorer or scientist pursuing a brilliant idea. And we will protest against such a fate although we do not know anyone who is to blame for it, or any way in which such disappointments can be avoided. It is no different with regard to the general feeling of injustice about the distribution of material goods in a society of free men. Though we are in this case less ready to admit it, our complaints about the outcome of the market as unjust do not really assert that somebody has been unjust; and there is no answer to the question who has been unjust. Society has simply become the new deity to which we complain and clamour for redress if it does not fulfill
the expectations it has created. — Friedrich Hayek

Failure of management to plan for the future and to foresee problems has brought about waste of manpower, of materials, and of machine-time, all of which raise the manufacturer's cost and price that the purchaser must pay. The consumer is not always willing to subsidize this waste. The inevitable result is loss of market. Loss of market begets unemployment. — W. Edwards Deming

Climate change is a result of the greatest market failure the world has seen ... We risk damages on a scale larger than the two world wars of the last century. — Nicholas Stern

I saw that "success," "failure," "poverty", "riches," were price tags, money values of the market place which had mesmerized and sidetracked me for years. — Anzia Yezierska

Keynes tried to show that market economies could settle in equilibrium states in which the labour market did not clear, and in which the level of unemployment was high. He believed that this was due to a particular example of market failure, developed in his concept of effective demand. — Paul Ormerod

Too many economists excuse their practical failure by saying "the politicians (or bureaucrats) didn't do exactly what I recommended." Just as medical practitioners must allow for the fact that their patients may not take all the pills they prescribe, or follow all the advice they are given, so economics practitioners need to foresee political and administrative pressures and make their plans robust to changes that politicians, bureaucrats, and lobbyists are likely to impose. — Paul Klemperer

From this failure to expunge the microeconomic foundations of neoclassical economics from post-Great Depression theory arose the "microfoundations of macroeconomics" debate, which ultimately led to a model in which the economy is viewed as a single utility-maximizing individual blessed with perfect knowledge of the future.
Fortunately, behavioral economics provides the beginnings of an alternative vision of how individuals operate in a market environment, while multi-agent modelling and network theory give us foundations for understanding group dynamics in a complex society. These approaches explicitly emphasize what neoclassical economics has evaded: that aggregation of heterogeneous individuals results in emergent properties of the group, which cannot be reduced to the behavior of any "representative individual." These approaches should replace neoclassical microeconomics completely. — Steve Keen

People are cast in the underclass because they are seen as totally useless; as a nuisance pure and simple, something the rest of us could do nicely without. In a society of consumers - a world that evaluates anyone and anything by their commodity value - they are people with no market value; they are the uncommoditised men and women, and their failure to obtain the status of proper commodity coincides with (indeed, stems from) their failure to engage in a fully fledged consumer activity. They are failed consumers, walking symbols of the disasters awaiting fallen consumers, and of the ultimate destiny of anyone failing to acquit herself or himself in the consumer's duties. All in all, they are the 'end is nigh' or the 'memento mori' sandwich men walking the streets to alert or frighten the bona fide consumers. — Zygmunt Bauman

The New Finance focused on the market's major systematic mistake. In failing to appreciate the strength of competitive forces in a market economy, it over estimates the length of the short run. In doing so, it overreacts to records of success and failure for individual companies, driving the prices of successful firms too high and their unsuccessful counterparts too low. — Robert Haugen

In short, what the living wage is really about is not living standards, or even economics, but morality. Its advocates are basically opposed to the idea that wages are a market price-determined by supply and demand, the same as the price of apples or coal. And it is for that reason, rather than the practical details, that the broader political movement of which the demand for a living wage is the leading edge is ultimately doomed to failure: For the amorality of the market economy is part of its essence, and cannot be legislated away. — Paul Krugman

China has seen a great deal of economic progress. It's certainly rather of a miracle. The growing role of the market in the economy will force China to open up its political system over time and to move toward a more democratic society. So taken as a whole, the one real failure in this whole business has been Russia. — Milton Friedman

Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands. By having confidence in their own analysis and judgement, they respond to market forces not with blind emotion but with calculated reason. Successful investors, for example, demonstrate caution in frothy markets and steadfast conviction in panicky ones. Indeed, the very way an investor views the market and it's price fluctuations is a key factor in his or her ultimate investment success or failure. — Seth Klarman

Many or most of our problems lie in combinations of market failure and irresponsible and short-term behaviour. — Pavan Sukhdev

Failure is a big part of a free market's success. People fail to live up to their potential, or to carry out all their good intentions, in all kinds of economic and political systems. Capitalism makes them pay a price for their failures, while socialism, feudalism, fascism and other systems enable personal failures, especially by those at the top, to be ignored. — Thomas Sowell

The reality is gas prices should be much more expensive then they are because we're not incorporating the true damage to the environment and the hidden costs of mining oil and transporting it to the U.S. Whenever you have an unpriced externality, you have a bit of a market failure, to the degree that eternality remains unpriced. — Elon Musk

For market discipline to constrain risk effectively, financial institutions must be allowed to fail. Under optimal financial regulatory and financial system infrastructures, such a failure would not threaten the overall system. — Henry Paulson

It was an interesting question as to whether the BBC had a future in the digital world, and what form of market failure could justify the licence fee system. — Gavyn Davies

As the great naturalist Charles Darwin saw clearly, individual and collective interests often coincide, as in the invisible hand narrative. But he also saw that in many other cases, interests at the two levels are squarely in conflict, and that in those cases, individual interests generally trump. That simple observation suggests that market failure is often the result not of insufficient competition (the traditional charge from social critics on the Left), but of the very logic of competition itself. — Bob Frank

Inside my heart there is
A temple, a synagogue,
a church, a mosque,
A monastery, a fish market
A serene lake, a tempestuous sea
Agreements and disagreements
Glory and failure
A big bang at dawn and
a little bang at dusk
All the cries, aspirations and
silent prayers
Yearning and seeking
Everything disintegrates
and dissolves
In a tempestuous ocean
Finally unifies
Collapses on one altar
In one Breath
In God — Gabriel Iqbal

Every major industry was once a growth industry. But some that are now riding a wave of growth enthusiasm are very much in the shadow of decline. Others that are thought of as seasoned growth industries have actually stopped growing. In every case, the reason growth is threatened, slowed, or stopped is not because the market is saturated. It is because there has been a failure of management. — Theodore Levitt

Courage drown by horses is hard to market, and makes more wounds. — Auliq Ice

The worst of failure of this kind is that it spoils the market for more competent performers. — James Agate

Many politicians and pundits claim that the credit crunch and high mortgage foreclosure rate is an example of market failure and want government to step in to bail out creditors and borrowers at the expense of taxpayers who prudently managed their affairs. These financial problems are not market failures but government failure ... The credit crunch and foreclosure problems are failures of government policy. — Walter E. Williams

Forget being 'discovered.' All you can do is write. If you write well enough, and are stubborn enough to embrace failure, and if you happen to fall into the narrow categories that the book market recognizes, then you might make a little money. Otherwise, it's a struggle. A gorgeous struggle. — Jess Walter

The credit crunch was based on a climate (the post-Cold War victory party of free-market capitalism), a problem (the sub-prime mortgages), a mistake (the mathematical models of risk) and a failure, that of the regulators. — John Lanchester

In a market economy, a main determinant of social standing is participation in the labor market and the associated willingness to 'self-commodify' (e.g., Esping-Andersen 1999), the latter term nicely emphasizing how market economies render all forms of worth, even self-worth, a function of market valuation. When individuals fail to self-commodify, they fall outside the most fundamental institutions of the society, thereby reducing them to nonentities and social ciphers. This is why a mere transfer of income to the underclass... is inconsequential in relieving feelings of social exclusion. If anything, such a transfer only draws attention to the initial failure to self-commodify. although a class map also embodies distinctions of social standing among those who have an enduring commitment to the labor market, the social divide between the underclass and all other classes looms especially large because it captures this fundamental insider-outsider distinction. — Ravi Kanbur

Piracy often reflects market failures on the part of producers rather than moral failures on the part of consumers. — Henry Jenkins

I have often thought that if heaven had given me choice of my position and calling, it should have been on a rich spot of earth, well watered, and near a good market for the productions of the garden. No occupation is so delightful to me as the culture of the earth, and no lucture comparable to that of the garden. Sucha a variety of subjeccts, some one always coming to perfection, the failure of one thing repaired by the succes of another, and instead of one harvest a continued one through the year. Under a total want of demand except for our family table, I am still devoted to the garden. — Thomas Jefferson