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> The industries that suck the most also have the most market failures: healthcare, housing, and education The healthcare, housing, and education industries ar
by baggy_trough 2y ago
> The industries that suck the most also have the most market failures: healthcare, housing, and education
The healthcare, housing, and education industries are some of the most highly regulated. Which came first, the market failure or the regulation?
- spencerchubb 2y agoMarket failure came before regulation. Standard Oil had a monopoly in the oil industry, so antitrust became a thing. There was information asymmetry around food and drugs, because there's no way for a consumer to really know what's in a food or a drug. So the FDA mandates that they put out accurate info with penalties for incorrect info. Information asymmetry and moral hazard led to 2008 financial crisis, which then led to Dodd-Frank reform
- baggy_trough 2y agoAt this point I think it's quite obvious that the cure is worse than the disease.
- spencerchubb 2y agoNot obvious to me! How is the cure obviously worse?