Libertarianism and the Realities of Governance
Author: COLLEEN ZENGER and EDWARD J. MARTIN
Published in GVER, Vol. 7 No. 1
Libertarianism is an economic theory that bases its tenets on the normative assumptions that individual freedom will maximize personal and societal wealth. These assumptions are in turn based on the rationality of the “free market” being the most efficient method for the distribution of wealth and resources for individuals and countries. However, the failure of libertarian theory is demonstrated in the recent movement to deregulate the economy, specifically the deregulation of electricity in California and the deregulation of the banking industry in the United States.