07-10-2016, 02:56 PM
Hmmm. Ever wondered why humans are exceptionally intelligent? Here's my theory and some relevant clips.
Let me cut to the chase on Rothbard. His diagnosis of the fundamental problem with government was correct... (unable to correctly valuate public goods)... but his prescription was incorrect (eliminate the government). Public goods can be correctly valuated simply by allowing people to choose where their taxes go (pragmatarianism FAQ).
Here are the two relevant papers by Rothbard...
Toward a Reconstruction of Utility and Welfare Economics
The Myth of Neutral Taxation
The fundamental problem with Netflix is that the "leaders" of Netflix are unable to correctly valuate shows/movies. They aren't mind-readers. They can't reach into your mind and pull out your valuation of Charmed. Sure, they have access to your star ratings... but ratings, like ballot votes, cost you absolutely nothing. There's zero opportunity cost. When you give Charmed 5 stars you really aren't demonstrating your preference. You're simply stating your preference. The solution would be to allow Netflix users to allocate their fees. You would be able to spend all of your Netflix fees on Charmed. Would you be willing to spend all your Netflix fees on Charmed? I don't know. I'm not a mind-reader.