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I don't think you got what I'm saying. I mean that when you simply give money to people where there may not be efficient markets for some needed good (which y
by supernova87a 5y ago
I don't think you got what I'm saying. I mean that when you simply give money to people where there may not be efficient markets for some needed good (which you wanted the money spent on), private enterprise often will just exploit the infusion of money to jack up prices and not actually provide more of the service desired.
- zozbot234 5y ago> private enterprise often will just exploit the infusion of money to jack up prices When this happens, it's because there are unrelated supply constraints, usually resulting from misguided government intervention. The healthcare sector is a good example in the U.S.
- kmos17 5y agoYes exactly, or sometimes it is due to regulations written to protect profits creating abnormal market conditions, like for student loans, they are backed by the government and can’t be discharged in bankruptcy and everyone is surprised tuitions have gone up so much?