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That works for this one example, where the government is selling something, effectively creating a tax on people willing to pay to save time. But most market e
by kbutler 9y ago
That works for this one example, where the government is selling something, effectively creating a tax on people willing to pay to save time.
But most market exchanges do not involve the government (except sales tax). The government can't efficiently capture the excess funds Bob is willing to spend on ice to provide ice for Paul (though the increased price should provide great incentive for people to increase the supply of ice...)