Tuesday, February 26, 2008

Government Intervention

It's not that you can never envision any theoretical case where intervention might be helpful. It's just that there are so many real-world problems attached to interventionism, that is never going to be a good bet:

1. Likelihood of getting it right--timing and scope.
2. Temptation for pork-barreling pile-on.
3. Permanency effect--government programs seem to live on forever.
4. Moral hazard.
5. Distracting government from core missions (choose between doing a few things well, or many things poorly).

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