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Yup, government coming in and distorting the free market in all kinds of ways is very wasteful. However, there are cases where the benefits outweigh the drawba
by eloff 4y ago
Yup, government coming in and distorting the free market in all kinds of ways is very wasteful.
However, there are cases where the benefits outweigh the drawbacks.
For example, it's nice to get your energy, metals, computers, industrial machines domestically instead of being at the mercy of a foreign country. Especially if the foreign country isn't ideologically aligned with yours.
- LeanderK 4y agoin this example it is wasteful but it also decreases risks in the long term. The free market does not have to produce the most efficient solution, it just often does.
- Sakos 4y agoThe free market is only able to optimize towards local maxima. That maxima might have plenty of downsides that don't affect its performance, but have negative effects on human beings and society that aren't captured by market mechanisms.