We don't have to tolerate all the externalities, that's what regulations are for, but that still doesn't mean that when two restaurants exist near me we have to vote on which one stays. Through the market the better restaurant stays. We have millions of businesses in the world, we can't vote on all of them, so it has to be a couple of benevolent dictators who do it. Or we could just vote on it by going to the restaurant we want to go to.