> If the market were too small, the weakest would fail, right? Right?
I find it interesting that we have sayings like this, and sayings like "the market can stay irrational longer than you can stay solvent."
> why should a politician need to step in to regulate, rather than letting the market decide?
Because the market doesn't price in externalities. Sure the market will figure out which car washes live. But what about the ones that don't and the people who subsequently lose their jobs.
It's a fair question to ask if you're building too many of a certain service, especially when the ones that fail leave behind abandoned husks and unemployed people. Ya know, the people that the local politician is supposed to help. Local leaders should be at least thinking about these questions.
I find it interesting that we have sayings like this, and sayings like "the market can stay irrational longer than you can stay solvent."
> why should a politician need to step in to regulate, rather than letting the market decide?
Because the market doesn't price in externalities. Sure the market will figure out which car washes live. But what about the ones that don't and the people who subsequently lose their jobs.
It's a fair question to ask if you're building too many of a certain service, especially when the ones that fail leave behind abandoned husks and unemployed people. Ya know, the people that the local politician is supposed to help. Local leaders should be at least thinking about these questions.