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I think many times we (and especially governments) mistakenly believe that their intervention in a market is going to bring that market to an equilibrium with a
by pjschlic 15y ago
I think many times we (and especially governments) mistakenly believe that their intervention in a market is going to bring that market to an equilibrium with a higher social optimum. Governing bodies are drawn to intervene because they get to extend their power, and even those with good intentions are often overly optimistic about their abilities to predict the outcomes of their intervention.