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The free market has failed in two areas: climate change and retirement.

Laurence Douglas Fink

Remarks at the *DealBook* conference, 2021 · Gecheckt op 14 maart 2026
The free market has failed in two areas: climate change and retirement.

Analyse

While markets alone have not adequately addressed climate change—due to externalities like carbon emissions not being fully priced in—this is partly a result of **policy gaps** (e.g., lack of carbon taxes or subsidies for renewables) rather than an inherent market failure. Similarly, retirement systems (e.g., Social Security in the U.S. or pension schemes globally) are **heavily regulated or publicly managed**, with challenges stemming from demographic shifts, political decisions, and structural design flaws—not purely market dynamics. Fink’s framing conflates market limitations with broader institutional and governance failures. His statement also omits examples where markets *have* driven progress (e.g., renewable energy cost declines) or where hybrid public-private solutions (e.g., 401(k) plans) exist.

Achtergrond

Laurence Fink, CEO of BlackRock, made this remark at the *New York Times* **DealBook Summit (2021)**, emphasizing the need for private-sector leadership on climate and retirement. His comments reflect BlackRock’s push for **ESG (Environmental, Social, Governance) investing** and critiques of short-termism in capital markets. However, climate change and retirement are **mixed-economy problems**: climate action requires global treaties (e.g., Paris Agreement) and state intervention, while retirement systems often blend public safety nets with private savings vehicles.

Samenvatting verdict

Laurence Fink’s claim oversimplifies complex systemic issues by attributing them solely to 'free market failure,' ignoring the roles of policy, regulation, and global coordination in climate change and retirement systems.

Geraadpleegde bronnen

— New York Times. (2021, December 1). *Larry Fink Says the Free Market Has Failed on Climate and Retirement*. [Transcript/Video](https://www.nytimes.com/2021/12/01/business/dealbook/davids-rubenstein-larry-fink.html)
— Stern, N. (2007). *The Economics of Climate Change: The Stern Review*. HM Treasury (UK). [Link](https://webarchive.nationalarchives.gov.uk/ukgwa/20130129110115/http://www.hm-treasury.gov.uk/sternreview_index.htm)
— Munnell, A. H. (2021). *The U.S. Retirement System: Challenges and Opportunities*. Center for Retirement Research at Boston College. [Link](https://crr.bc.edu/briefs/the-u-s-retirement-system-challenges-and-opportunities/)
— IPCC. (2022). *Climate Change 2022: Mitigation of Climate Change*. [Chapter 15: Investment and Finance](https://www.ipcc.ch/report/ar6/wg3/)
— BlackRock. (2021). *2021 Letter to CEOs: A Fundamental Reshaping of Finance*. [PDF](https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter)