Abstract
We reject the theory of market failure, according to which some items are “public goods” which either cannot be produced by private enterprise at all or, if so, then too little. Basic research and terraforming are supposed to be examples of this critique of the free-enterprise system, and we find both wanting. Terraforming, in particular, might well be one way in which Mars will become habitable. So it is very important from our point of view, to demonstrate that this could be accomplished without any “aid” from government.
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Notes
- 1.
Basic research includes such concepts as Einstein’s general theory of relativity, Pythagoras’ theorem, and Euclid’s geometry. It is not specific research, for example, regarding the development of a medication to cure cancer. When Newton set down the principles of calculus, he was trying to find a way to address mathematical problems he was facing: to wit how to find solutions related to the limits of equations where the denominator of a fraction approached zero. (The result of a real number divided by zero is indeterminate. See the mathematical “proof” that 2 = 1 at the end of this chapter.) No one asked Sir Isaac to do that; so, other than the opportunity to sell a few books, he had no hope of financial gain. Certainly, the British Crown did not ask for it.
- 2.
- 3.
Notice that those who pay for radio waves have an interest in reaching the widest audience possible. Sponsorship is rivalrous in that only so many commercials can be broadcast without driving away too many potential listeners. The radio station thus excludes advertisers. But viewing is made to be non-competitive on purpose. This discussion isolates from paid TV where all or part of the income is directly from the viewer.
- 4.
The proportion of goods for which there is market failure depends upon the judgement of the economist. Presumably the Marxist economist (a contradiction in terms) would see very few purely private goods relative to others in this profession; whereas, this book you are now reading demonstrates that all things are privately created and that the concept of market failure is devoid of meaning.
- 5.
That local access streets may not be set up to exclude motorists, or even pedestrians, is a misconception. We see already in our day, access to streets limited in gated communities. Limitation of access can be accomplished not only by fences but by no-trespassing signs, guards, or technologies not yet devised. Availability of access should be determined by the owner(s) of the street.
- 6.
A bicycle in motion stays upright because of the conservation of angular momentum. If a rotating wheel tilts to the right, then it will veer to the right to compensate. For a video of a demonstration refer to Physilicious (2009). For the reader who is unfamiliar with it, we strongly recommend reviewing the YouTube demonstration listed in the bibliography—it is fun.
- 7.
- 8.
This assumes that the owner wishes to exclude users. Let us consider a street in a commercial district. The merchants want as many people as possible to use the street. Therefore, they would consider it part of the overhead of conducting business and charge their customers nothing. Should the street become so busy that people are driven away, they would improve the street at their own expense and thank their blessings for such success.
- 9.
There would be only tiny costs for empty hotel rooms; sweeping the floor, laundering the sheets, etc. This is a small proportion of the total price of these amenities. More to the point, empty seats might be a signal to the capitalist that he is charging too much. To maximize profits by achieving 100% occupancy, he could lower the price. However, he will likely find it more efficient, or at least easier to manage, if he charges a single price that sometimes results in long lines while at other times, seats go unoccupied.
- 10.
With apologies to Ralph Kramden, a character created in the 1950s by Jackie Gleason.
- 11.
- 12.
An actual announcement is not strictly necessary and might be risky from a liability point of view. A would-be aggressor will discover on his own who is unprotected.
- 13.
One process of the colonization of celestial bodies would be terraforming. If anything were a public good a “terraformed” planet would seem to be it. For the reasons cited above, this too would also be provided by the free market . For more on this, refer to the discussion below.
- 14.
“Colonization ” has a bad press. It is associated with exploiting helpless people. Happily, no such implication can attach in the present case, unless there are Martians or Venusians who will be ground down by human beings. For the argument that this process was actually helpful to its supposed victims back here on Earth , see Ferguson (2011).
- 15.
For an important critique of government supported basic research , see Accad (2016).
- 16.
This funneling of economic activity through the government occurs only at the state’s own insistence, through compulsory levies.
- 17.
“But here I want to address a companion argument that is often used to justify not only expansive government per se, but a large military sector specifically. It’s the argument that war is an important, and even necessary, source of scientific progress, because technologies developed by the state to fight wars often have important civilian uses. Innovation is a side benefit of war, say war’s defenders. By mobilizing all the resources of society, through coercion, repression, and exploitation, we get not only civic pride and the martial spirit, but also great new technologies ” (Klein 2013). Yes, Tang ® and radar (an acronym for RAdio Detection And Ranging) came to us “courtesy” of the ever-loving government. But what wonders would the free market have produced instead, or rather in addition, had the statists not spent vast amounts of treasure on these discoveries. Oh, and Tang ® did not come from the government (see Chap. 10).
- 18.
For an examination of private roads, bridges, and tunnels in terms of privatization, see Block (2009).
- 19.
See on this Anderson and Hill 1996; Block 2002c , 2009; Butler 1988; Carnis 2003; Ebeling 2013; Hanke 1987a, b; Hannesson 2004, 2006; Hoppe 2011 ; Karpoff 2001; Megginson and Netter 2001 ; Moore 1987; Moore and Butler 1987; Motichek et al . 2008; Ohashi 1980; Ohashi et al . 1980; Pirie 1986; Savas 1987; Walker 1988; White 1978.
- 20.
Salerno (2015) avers: “Now it is certainly true that a reduction in real government spending causes a reduction in real GDP , as it is officially calculated. But…the reduction in government spending does not retard the growth of production of goods that satisfy consumer demands and, in fact, most likely accelerates it. In addition, real incomes and living standards of producers/consumers in the private sector rise as a direct result of the decline in government spending. The reason for this seeming paradox lies in the conventional method used to calculate real output in the economy.” And what is this “conventional method?” It is to add to the GDP all government expenditure regardless of whether it promotes economic progress. For example, if all the state did was dig holes and fill them up again, and there were no other reverberations from such an act, this would boost officially measured well-being, while obviously reducing real goods and services available to the public . See also on this Casey 2015; Rothbard 1970, p. 201; Strow and Strow 2013.
- 21.
The pernicious notion that a claim of homesteading is plausible from the planting of a flag by a conquistador abstracts from the rights of the indigenous peoples.
- 22.
That is, an acre in fertile Kentucky would be worth two or more in less fertile Wyoming, and many acres in the desert of Nevada or the arctic tundra.
- 23.
- 24.
For a libertarian analysis of grey areas and continua, see Block and Barnett (2008).
- 25.
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Nelson, P.L., Block, W.E. (2018). Public Goods: Basic Research and Terraforming. In: Space Capitalism. Palgrave Studies in Classical Liberalism. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-74651-7_11
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