(no subject)

[timelets]

The fundamental problem with post-Smithian market-based approach to economics is that a Pareto optimal outcome ignores the issue of fairness. Fairness is supposed to emerge from free markets as if by itself through the bargaining mechanism. But such mechanism (besides information asymmetry, monopoly, and other market-specific bargaining power problems) is subject to non-market forces. It appears we are now stuck in a false dichotomy between market and government regulation, neither one of which provides a satisfactory solution to the fairness problem.