Optimality versus Fire

Public choice economists have long argued that conventional economists hold markets to far higher standards than they hold government.  Markets “fail” unless they’re optimal.  Governments “succeed” unless they’re on fire.  If this seems unfair, compare the standard definitions of “market failure” and “failed state.”  Market failure exists whenever markets fall short of perfect efficiency.  To be a failed state, in contrast, requires habitual disaster.

Is this a Straw Man?  I think not.  Even...