Study Guide to Man, Economy, and State with Power and Market

Chapter 12: The Economics of Violent Intervention in the Market 167
have spillover effects on third parties. On moral grounds, what
is the problem if someone benefits from the voluntary actions
of other people? From an economic standpoint, this approach
too is flawed because it would include all sorts of things not
normally considered a “market failure.” For example, every
time someone invests and increases the capital stock, this provides
a positive externality on all workers. Should they therefore
have some of their wages diverted to the investor?