The political voting booth is a far weaker disciplinary mechanism than the profit-and-loss mechanism: politicians who back failed programs (like Amtrak) have incentives to keep pushing them rather than adjust, whereas a market failure (like the Edsel) leads to rapid reallocation of resources.

causalpending

Speaker

Peter Boettke

Evidence Quote

the incentive for the politician is to actually continue to push the failed program rather than to adjust

Source

Peter Boettke on Hurricane Katrina and the Economics of Disaster 12/18/2006EconTalk
Created: 6/17/2026, 10:29:22 AM

My Notes

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