Page "Market failure" Paragraph 19

Many social democrats and " New Deal liberals ", have adopted this analysis for public policy, so they view market failures as a very common problem of any unregulated market system and therefore argue for state intervention in the economy in order to ensure both efficiency and social justice ( usually interpreted in terms of limiting avoidable inequalities in wealth and income ).

Both the democratic accountability of these regulations and the technocratic expertise of the economists play an important role here in shaping the kind and degree of intervention.

Neoliberals follow a similar line, often focusing on " market-oriented solutions " to market failure: for example, they propose going beyond the common idea of having the government charge a fee for the right to pollute ( internalizing the external cost, creating a disincentive to pollute ) to allow polluters to sell the pollution permits.