The Boeing/FAA case illustrates market-versus-government failure: Boeing has strong incentives not to crash planes, but the economist's nuance is that firms may cut corners for short-term profit; government 'can' help by checking corner-cutting—but the real question is whether the FAA in practice reduces corner-cutting or merely makes life harder for Boeing without adding expertise the manufacturer lacks.

causalpending

Speaker

Russ Roberts

Evidence Quote

tell me how it in practice reduces that corner-cutting as opposed to just making life more difficult for Boeing

Source

Clifford Winston on Market Failure and Government Failure 12/28/2009EconTalk
Created: 6/15/2026, 9:37:54 AM

My Notes

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