Source: Foundation for Economic Education
by Walter Block
“We all seek an end to fraud. Aside from being inherently wrong, this type of crime also undermines the economy. Yes, mutual gains from fraudulent transactions can still be made ex ante (looking ahead). This is so for all commercial interaction, without exception. Each side, even in fraudulent interactions, expects to gain in utility from the purchase or sale or rental or borrowing or lending, etc. However, fraud plays havoc with utility ex post (after the fact). Only one side can gain; the other is the clear loser. All men of good will must necessarily oppose fraud, as it is in opposition to human flourishing. How, then, to eradicate fraud? One possibility is to declare informational asymmetry a market failure, and to have government address this problem.” (06/12/24)
https://fee.org/articles/is-informational-asymmetry-a-market-failure/