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Take this with a grain of salt, since I am not an economist. However, I think that Government intervention isn't evil. For the free market economy to work, a n
by orib 18y ago
Take this with a grain of salt, since I am not an economist. However, I think that Government intervention isn't evil.
For the free market economy to work, a number of assumptions are made in the model. For example, we assume that consumers are well informed, and make judgements on the product's attributes. We also assume that there are no significant externalities, and all costs are actually exposed to the companies.
Labelling the foods with their actual properties, testing them for safety, and other similar government intervention can actually bring things closer to the ideal free market economy where the consumers know what they're buying, and the costs of environmental cleanup are passed on to the companies causing the damage.