Ok, I'm not even going to retype this stuff for you
http://en.wikipedia.org/wiki/Coase_Theorem#Criticism
Understand transaction costs or don't, but please stop flapping your mouth about economics. You obviously have no idea what you're talking about. Last time I gave you a supply and demand diagram, you said you didn't understand it because you're "not an economist"... this is INTRO ECON 101 shit, no degree required, take a goddamn class!
Transaction costs are a challenge, one a free market would happily take up. Since governments are so bad at dealing with externalities, it's almost impossible to imagine a free market doing worse.http://en.wikipedia.org/wiki/Coase_Theorem#Criticism
Understand transaction costs or don't, but please stop flapping your mouth about economics. You obviously have no idea what you're talking about. Last time I gave you a supply and demand diagram, you said you didn't understand it because you're "not an economist"... this is INTRO ECON 101 shit, no degree required, take a goddamn class!
In fact, governments are probably more vulnerable to externalities and transaction costs than any other organization or operation. Voters have no incentive to educate themselves about the issues, almost no incentive to balance the costs of their actions to other people, and candidates have little to no incentive to plan past the end of their terms.
