Market failure

(n) a useful term generally deployed in a fairly indiscriminate way when attempting to attract or justify public funds. In fact, as classical economists will tell us, markets neither fail or succeed, they simply operate, with varying levels of efficiency, in the interests of those with the greatest market power – i.e. those with the resources, or ‘the rich’. Paradoxically therefore, poor areas are not the consequence of market failure, because otherĀ  areas are doing very well out of the same market process. The regeneration solution to this is not environmental improvements, but social revolution, but this has yet to be introduced into the Treasury Green book process.


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