Blame the Tyranny of the Market

Free-market economists have told us for decades that we should rely on market decisions, not the government, to meet our needs, because it's the market that satisfies everyone's every desire. ...

[But] for small groups with preferences outside the norm, the market often fails to deliver. ... Two simple conditions that prevail in many markets mean that individual taste alone doesn't determine individual satisfaction. These conditions are 1) big setup costs and 2) preferences that differ ... In my research, I've discovered that this phenomenon is widespread. ...

[For example,] with drug development costs near $1 billion, if you are going to be sick, hope that your disease is common enough to attract the interest of drug makers. If you want to fly from your town to Chicago, hope that your city is big enough to fill a plane every day.

When you're not so lucky, you benefit when the government steps in on your behalf, with subsidies for research on drugs for rare diseases or for air service to small locales.

For a generation, influential economists have argued for letting the market decide a wide array of questions, to protect your freedom to choose whatever you want. This is true — if everyone agrees with you.