Earlier quoted context omitted.
> most libertarians I know today aren't so keen on things like pigovian taxes to correct differences between marginal social cost and marginal private cost. Which is weird! I've never understood why libertarians seem to discount external costs so deeply. I think there is a breed of libertarian that values them sanely, but that it's the less rabid sort that tends not to rant on the internet. I'd include Friedman and M…
> I've never understood why libertarians seem to discount external costs Most libertarians are aware that the Government meddles heavily in the economy, and everything bad about the economy that's blamed on capitalism wasn't a fair test b/c it wasn't actually laissez faire capitalism that was tested. There is no good reason to expect external cost problem to be worse under a genuinely free market than they are now. S…
Ah, we've pinpointed the nonsense! I'll leave you with some words from Milton Friedman on the New Deal:
> The other part of the new deal policy was relief and recovery … providing relief for the unemployed, providing jobs for the unemployed, and motivating the economy to expand … an expansive monetary policy. Those parts of the New Deal I did support. (…) Because it was a very exceptional circumstance. We'd gotten into an extraordinarily difficult situation, unprecedented in the nation's history. You had millions of people out of work. Something had to be done; it was intolerable. And it was a case in which, unlike most cases, the short run deserved to dominate.
With the point being, sometimes government is necessary and sometimes it's not. It's not an all-or-nothing endeavour.