Markets Don't Fail! [Hardcover]

Brian P. Simpson (Author)

Book Description

Publication Date: May 3, 2005 | ISBN-10: 0739110349 | ISBN-13: 978-0739110348 | Edition: First Edition first Printing

In all of the contemporary economics textbooks that have been written there is typically at least one chapter that addresses "market failure." Markets Don't Fail! is a response to what author Brian Simpson sees as a fundamental error in the thinking of some economists. The chapter titles of this book are crafted against the premises of "market failure" arguments, and a significant portion of this book focuses on exposing the invalid premises upon which the claims of market failure are based and providing a proper basis upon which to judge the free market. The material in this book provides a strong antidote to the arguments typically presented in contemporary economics textbooks. Through example and argument, Brian Simpson shows that the claims against the free market are not true. In fact, he demonstrates how free markets succeed, how they raise the standard of living of all individuals who live within them, and how free markets allow human life to flourish. However, the book goes much deeper than economics by providing a moral and epistemological defense of the free market. Markets Don't Fail! gets to the fundamental, philosophical reasons why the claims of market failure are false and why markets actually succeed. Through an integration of economics and philosophy Simpson is able to provide a comprehensive, rigorous, and logically consistent defense of the free market. The specific topics covered in the book include monopoly, antitrust laws and predatory pricing, "externalities," the regulation of safety and quality, environmentalism, economic inequality, "public goods," and asymmetric information. This book is an invaluable tool for anyone who wants to gain a sound understanding of the free market.

Editorial Reviews

Review

Markets Don't Fail! is akin to works such as Henry Hazlitt's Economics in One Lesson, or Frederic Bastiat's The Law, not only in terms of the free market ideas it espouses, but also given its clear writing style, its reasonable length, and its staunch defense of unregulated economic activity. This book is a significant contribution in economics. It is the first and only such book written from the perspective of Objectivism, the philosophy of Ayn Rand, which has provided a strong impetus for a revival of classical liberalism, based on individual rights and limited government. The writer has remained focused on his defense of markets on the basis of individualism. He has used sound scholarship to advance his case and he clearly knows the material and, thankfully does not burden the text with footnotes for the sake of footnotes. This is the only contemporary text that has taken this approach and is accessible to the beginning student. (Lewis, John )

Too many economics textbooks allege instances of market failure and call for government intervention while ignoring government failure. Markets Don't Fail! demolishes allegations of market failure and demonstrates that . . . market allocation of resources is the superior alternative. (Walter E. Williams )

A skillful blending of economics with its foundations in philosophy....This book defends the market economy against the many attacks made today by contemporary economists. Ranging from the theory of economic monopoly and its basis in the doctrine of pure and perfect competition to the theory of asymmetric information, the author point by point thoroughly demolishes the myriad varieties of alleged market failure. (Jerry Kirkpatrick )

This is a rare book on economics that grounds its support of a free market in an explicit code of morality—-the ethics of rational egoism. The intellectual support of capitalism requires more such books..... (Bernstein, Andrew )

Recommended. (CHOICE )

This book is a refreshingly clear text that illustrates the real-world benefits of laissez-faire capitalism. Dr. Simpson uses powerful logical arguments and illustrative examples to make a bulletproof case for the free market. He provides an easily understandable description of competition and monopoly, and shows that monopolies cannot arise in the free market. Dr. Simpson does an excellent job explaining a complex topic that involves so many issues. More importantly, he succeeds in convincing people of the validity of his claims. Everyone should own a copy of Markets Don't Fail! if they want to make sense of the crucial issues concerning the free market. (Dwyer, Michael )

This is a rare book on economics that grounds its support of a free market in an explicit code of morality—-the ethics of rational egoism. The intellectual support of capitalism requires more such books. (Bernstein, Andrew )

So expertly written as to be accessible for even the non-specialist general reader with an interest in how free markets work, and concluding with an epilogue, Markets Don't Fail! is enhanced with a substantive bibliography and a comprehensive index. (Midwest Book Review )

Simpson's book is a most valuable contribution and I recommend it to all students of economics. Simpson is a gifted student of George Reisman, and he has been much influenced by Reisman's great treatise Capitalism. (David Gordon The Mises Review )

About the Author

Brian P. Simpson is Assistant Professor in the School of Business and Management at National University.

Product Details

• Hardcover: 234 pages
• Publisher: Lexington Books; First Edition first Printing edition (May 3, 2005)
• Language: English
• ISBN-10: 0739110349
• ISBN-13: 978-0739110348
• Product Dimensions: 9.1 x 6.2 x 1 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (4 customer reviews)
• Amazon Best Sellers Rank: #3,777,473 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

26 of 31 people found the following review helpful:

5.0 out of 5 stars Especially recommended for professional and academic library reference collections, February 8, 2006

By 

Midwest Book Review (Oregon, WI USA) - See all my reviews

This review is from: Markets Don't Fail! (Hardcover)

Especially recommended for professional and academic library reference collections, as well as Political Science and Economics Studies student supplemental reading lists, Markets Don't Fail! by Brian P. Simpson (Assistant Professor, School of Business and Management, National University, La Jolla, California) fundamental economics issues ranging from Capitalism, Socialism, and the Mixed Economy, to Monopoly, antitrust laws and predatory pricing, "externalities", economic inequality, public goods, and asymmetric information. So expertly written as to be accessible for even the non-specialist general reader with an interest into how free markets work, and concluding with an Epilogue, Markets Don't Fail! is enhanced with a substantive bibliography and a comprehensive index.

13 of 15 people found the following review helpful:

5.0 out of 5 stars This Books Needs To Have Been Written, April 26, 2007

By 

Jerry Kirkpatrick (California) - See all my reviews
(REAL NAME)   

This review is from: Markets Don't Fail! (Paperback)

Markets Don't Fail! is a book that needs to have been written--to enable both undergraduate students and intelligent lay persons to better understand the true nature of laissez-faire capitalism. This book defends the market economy against the many attacks made today by contemporary economists. Ranging from the theory of economic monopoly and its basis in the doctrine of pure and perfect competition to the theory of asymmetric information, the author point by point thoroughly demolishes the myriad varieties of alleged market failure. A skillful blending of economics with its foundations in philosophy.

7 of 7 people found the following review helpful:

5.0 out of 5 stars Does Not Fail to Deliver!, June 13, 2008

By 

Doug (Washington D.C. area) - See all my reviews

Amazon Verified Purchase

This review is from: Markets Don't Fail! (Paperback)

Markets Don't Fail! is a defense of free market economics. What makes this work so unique is that it not only defends free market economics on *technical* grounds but it also defends this system on *moral* grounds. It should be noted that in addition to being a professor of economics, the author is also an Objectivist. Thus, his moral defense of capitalism employs the ideas of novelist and philosopher Ayn Rand.

Although there are many technical arguments, most of the value of this work stems from the Dr. Simpson's refutations of both the philosophical and moral standards often used when a free market is said to have failed. For example, it is often claimed that capitalism is bad because it leads to income inequality. While he does not deny the veracity of this claim, Dr. Simpson nevertheless asks why should incomes be equal? After all, individuals typically have different levels of motivation, different goals, different access to resources, different training and exert different levels of dedication.

This book is filled with many other important defenses of capitalism. A few other important issues addressed include the intentional subjectivity of many of the antitrust laws, the unrealistic assumptions that are the basis for developing "perfect" competition theory, how problems stemming from externalities, such as air pollution, can be handled in a free market and how consumers can be sure of the quality and safety of products under capitalism.

If you are interested in both Objectivism and economics or if you are simply intrigued as to how free markets are morally justified, this is an excellent book for you. If you are interested in this work, then I also recommend Andrew Bernstein's The Capitalist Manifesto, which offers a compelling historic and moral case for laissez-faire capitalism.