Michael Sandel doesn't like capitalism. But he can't seem to manage an economic argument for why. He's content to claim that capitalism is morally corrupting, converting anticapitalism into a sort of pseudoreligious faith.
Economists have long tried to use the idea of "public goods" as justification for a wide variety of government interventions. But there is no objective measure for what's a public good and what's not.
The lockdowns of the past month have not been conducive to the common good. While they have saved the lives of many people, they have also endangered—and are still endangering—the lives and livelihoods of many others. They have created a new and dangerous political precedent.
Regardless of government actions, many consumers, workers, and producers may seek changes that reduce exposure to disease in the workplace. The best way to do this is through markets.
Politicians and pundits have a blind spot when it comes to international economic transactions. They ignore a portion of trade! In particular, they ignore trade in claims on future income—that is, stocks and bonds.
It is precisely during a crisis that private property, the price mechanism, and the profit and loss system are most important, and when the government can do the most damage.
Anti-price gouging laws mean that those who really end up getting the short end of the stick are those who don't have the time or the means to beat the crowds to the store. Worse off are those of lesser means who rely on public transportation or walking to transport groceries home.
What needs to be done in such a crisis is not to attempt to steer the market to ensure it provides what is needed, but to let it free to do what it always does: match the goals of entrepreneurial producers with the needs of the populace.
