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Ok. How does it fail in reality? Please be specific.



Precisely because of what I said: people aren't 100% rational beings with full information. People, especially in third world, war-torn, poverty-ravaged countries don't have the power to make the "best decision" in to a libertarian free-market approach as you suggest. Some things aren't solved by capitalistic competition.


Again, what bad decision will they make regarding charter cities due to being irrational? Why do you think that Hondurans will make choices so terrible w.r.t. charter cities that they should be forbidden from having that choice?

Similarly, because Hondurans are irrational, should they also be forbidden from entering Mexico and the US? Similarly, Brexit is good because Europeans and Brits might irrationally make the wrong choice on where to live?

Pointing out that people are irrational is not a magic argument against all policies that sound "too libertarian" to you. You still need to actually make an argument (presumably using irrationality as an underlying premise), which you haven't.




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