Today during a lecture, Professor Thomas DiLorenzo mentioned what he called the "Nirvana fallacy" (which could also be called the "Utopia fallacy"). The idea is that markets will always seem like they're failing when one compares them to Utopia. What one should instead do is compare the current market condition with other possible market conditions.

The example he gave is that if 1000 people--one of whom is Bill Gates--have an idea at the same time, the eventual output to consumers resulting from this idea will be much greater than the output resulting from only Bill Gates's having the idea by himself. When only Gates implements the idea, the output ... work on this

Share this