From: Rafal Smigrodzki (rms2g@virginia.edu)
Date: Tue Sep 03 2002 - 11:22:06 MDT
Max More wrote:
I'm not certain. I think DARPA does a good job -- probably the best of any
govt. agency. It's funding of research specifically is set up to be
temporary and to prevent the build up of entrenched interests. See, for
example:
<and>
Why is that? Could it be that the market for this doesn't function well
enough? Of course, pace Mises, that *doesn't* mean the government will do
better. Government failure and all that. But it *does* mean that we can
look for a way to either change the structure of the market so that this
information flows better, enabling such schemes to actually work, or to
look for a minimal but helpful way in which government might fill in the
gaps. Again, for the latter, I would consider it a last resort. If I were
discussing this option with a regular kind of person, I would certainly
spend far more time emphasizing the failures of government. I don't think
you need a whole of convincing on that issue!
### I fully agree with you that the government is likely to be the best type
of organization to provide certain forms of information, such as basic
research, consumer information, etc. However, worker retraining is something
else (although it does consist of the provision of information). The
information best paid for by taxation is very expensive and at the same
diffuse in its impact on the society. Basic research is a prime example,
with sometimes decades passing before a given project pays off,
significantly limiting serious private investment. Also, to be useful, the
information produced must be widely disseminated, so charging for it almost
impossible. Trade in basic science information is therefore very difficult
and a free market alone will not produce sufficient amounts of this crucial
ingredient of our economy.
Worker retraining is different - information is provided to individuals,
with a relatively clear idea of the cost and expected benefit (future
salary). As such, the training becomes a commodity, and can be profitably
traded. The free market makes an excellent job of providing it.
Rafal
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