Banning a Risky Product
"Banning a Risky Product Cannot Improve Any Consumer's Welfare (Properly Understood), with Applications to FDA Testing Requirements" is now required reading for all LIBERTARIAN BIOETHICS BLOG fanatics. This Robert Higgs article, originally published in The Review of Austrian Economics Vol. 7, No. 2 (1994):3-20, is a masterpiece of logical thinking. I have struggled for quite some time to grasp the flaws in the basic neoclassical economic argument for regulation of "risky" goods. I struggle no more. This tour de force defines risk, details the prospective subjective utility consumers seek to maximize, eviscerates the concept of "perfect information," applies this information to the criminal Food and Drug Administration, and concludes that the neoclassical economists are buffoons. Higgs's article is a libertarian classic.
Comments are closed.
LIBERTARIAN BIOETHICS BLOG
Don Stacy is a 47 yo libertarian writer and physician. His articles have been published by multiple libertarian-themed websites. He practices medicine as a radiation oncologist in Hazard, KY.