From the link: "A market failure is when people or companies pursuing their own self interest in a free-market economy arrive at a suboptimal outcome for society as a whole."
Discussion
I know what the definition is. I'm telling you that there is no market failure (you don't seem to even be able to identify any as a problem) that can be corrected by granting monopoly powers to a small group & telling them to regulate themselves & these other people too.
The primary check on the power of any organization is your ability to withdraw financial support. If you cannot refuse to pay then they don't care what you want & their own interests will dominate. The govt ability to tax is basically a guarantee that govt, as an organization, will be completely unregulated.
You can vote with a ballot, with your money, and with your feet (where you live). If you don't agree with a nation state, move to another.
A very extreme thing but possible.. especially in a democracy.
Examples of free market failure: Enron, FTX, sub prime mortgage crisis, shitcoins ripping people off...
The sub prime mortgage crisis was completely created by govt policy. I recommend The Housing Boom & Bust by Sowell followed by (the more important book) Meltdown by Woods.
FTX was literally funded & supported by dems & govt parasites funneling tax money through Ukraine.
Even still, corrupt things that fail are demonstrations of the market working as it should. It's govt bailouts to keep corrupt orgs alive that are the real problem. The market was trying to kill the corrupt banks in the 08 crisis, the govt kept them alive at everyone's expense.
It sounds very much like you don't have a strong grasp on the economic reasons behind the creation of Bitcoin & the dire need for sound money. We are a trading species. Societies rise & fall based on the money they use.
There are a lot of Bitcoin Audible episodes that do a very good job covering the basics of money. Worth doing some digging there.
Right now you can go to the store & buy what you want or not buy anything at all. Is Walmart going to be more responsive to people's needs if they get $1000 a month from everyone no matter what & then have people vote on what sort of items should be in a standard food basket that has to satisfy everyone?
What my neighbor buys today doesn't concern me, but if I have to eat out of a basket of goods they vote on I'm suddenly going to have reasons to hate all of my neighbors. Should I just wait 4 years & vote for a new Walmart CEO who might give me a better basket (and let my neighbors hate me for the change), or should I move to some other political region... maybe one dominated by Harris Teeter instead of Walmart where I'll get a slightly higher quality basket of goods that I'm still going to mostly be unhappy with.
None of that is freedom, it's insane to have other people managing our lives at all, much less so many aspects at once. It creates division & hatred & poverty & crippling inefficiencies.
Democracy *at best* is lowest common denominator mob rule, and it's usually even worse than that.
so rational anarchy using bitcoin creates a utopia? Just curious what your solution is
There's no such thing as a utopia... Just the freedom to do better & improve anything that currently sucks. If people are free to find economically sustainable ways to improve what annoys them, then there are always jobs & everything generally gets better. This has been the case in every mostly free society we know of.
If no one is free to do anything without buying permission from incompetent control freaks then everything goes to shit. This has been the case in every authoritarian society we know of.
If some people can print money at the expense of everyone else, they are by definition parasites, & will inevitably become detached control freaks.
No forced funding means no rules can be sustained that people won't voluntarily pay to protect. Sound money means there are no impossible to defeat structural parasites. Those things form the sort of foundation where people are more likely to be rewarded for merit & fiscal responsibility.
that's fair
You can have a mix of different types of gov/econ.. it seems you describe the extremes of either a command economy with totalitarianism or a capitalistic and anarchic society. It's not a 0 or 1 game
No, the seed of forced funding always grows.
That's what the failure of the American experiment teaches. The effort to create the smallest & most restrained govt ever, produced the largest & most destructive govt ever.
The aim was decent. The economic freedom produced prosperity. But the prosperity was fertile soil for the growth of the parasite they created. No piece of paper is ever going to be enough to restrain any organization once the power to steal with impunity gas been legitimized in the eyes of the people who are then destined to be its slaves.