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You raise an interesting point related to something I always point out to people in economics debates: Every time you see a dysfunctional market, look for the
by malandrew 13y ago
You raise an interesting point related to something I always point out to people in economics debates:
Every time you see a dysfunctional market, look for the policy which creates an asymptotic condition. That asymptotic condition (or the sum of several asymptotic conditions) is the likely culprit behind the dysfunction.
By asymptotic condition I mean and hard cap or limit that is unchanging based on circumstance (such as time). The reason asymptotic conditions are so toxic is because they become barriers to natural market corrections.