Your points about rtucaace cost-benefit analyses being impossible (at least outside transactions in competitive markets?) and political market failure are well taken, but they prove too much.Regarding cost-benefit analysis: No one could plausibly have quantified the costs and benefits of invading Afghanistan or passing the Clean Air Act or building the interstate highway system or recognizing intellectual property rights of a given sort we don't have enough data, we have no consensus on what values to assign to different things, and no one is smart enough to consider all the relevant facts and counterfactuals even were they known. Even serious, objective attempts to evaluate large-scale programs like these come off as extremely simplistic. Yet the relevant decisionmakers had to decide what to do in each of those scenarios, and their critics had to evaluate and critique their decisions. The decision whether to abolish all government and pray for a libertarian paradise (or a free market night watchman state, or whatever) is no different it will have costs and benefits to various individuals and no one knows with much accuracy what they'll be or how they'll balance out; so deregulation doesn't dodge your concern. The lesson is that some things are complicated and we won't always have nice clean answers yet we must decide nonetheless. Unless you want to propose a non-utilitarian moral theory that never calls for balancing As for public choice theory: Obviously voters look favorably on government programs that benefit them, but what this means is that politicians do have some incentive to come up with efficient regulatory policies. It's not as if government is never judged on the outcomes it produces. But of course these incentives are very imperfect; the point of the post was that video game subsidization is inefficient and tax loopholes created by interest groups are an unfortunate reality. When proposing any government action it is important to consider how it will play out in our interest group-stricken reality rather than in models that assume no political market failure (and I would do that if I had a specific proposal for subsidizing the music industry). Deregulation benefits some interest groups at the expense of others just as regulation does by hypothesis, everything government does and doesn't do is done or not done because some powerful actor benefits from the decision. So we aren't choosing in the abstract between big government and Ayn Rand's utopia; and if the latter existed, interest groups within it would wreck it in short order it's an incoherent ideal given the realities of human nature that underlie libertarian critiques of government. So we're just considering which politically plausible policies might be socially beneficial at the margin. I'm as doubtful as anyone of an interest group-driven government's capacity to make particularly good decisions (economic or otherwise), but I don't see any a priori reason why skepticism should be greater when the interest groups want more government than when they want less. In America today, I think we're getting many bad proposals for increased regulation and many bad proposals for decreased regulation. You have to focus on the marginal effects of any given proposal (which, as I admit, are often impossible to evaluate precisely). But perhaps this is not a very coherent expression of my views; I will try to do a better job at it sometime in the future.

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