Competing Ways
The challenge for an economy is to achieve coordination and improvement. Government and markets are two processes for doing so. Here is an interesting view.
"Market failure is real. In theory, if government officials could solve the calculation problem, they would provide incentives to increase or decrease the relevant activity to some theoretically optimal level. In practice, government does not steer the market to right quantity. Instead, government typically subsidizes demand and restricts supply, with countervailing effects on quantity but creating rents for narrow interest groups. This is true in housing, higher education, and health care." --Claremont
No comments:
Post a Comment