Fixing Economic Problems.   PDF Version  

It is human nature to want to fix things.. There may be something in an economy that is deemed needing to be fixed. Is something going on in an economy that is apparently unfair? So, a fix is implemented. Sounds simple.

This is the way it works in reality. A proposed fix is applied. Some benefits can be seen. Are there any costs? Yes, but each cost is spread out so that one human cannot feel the impact. Add up all of the small costs and they easily add up to more than any visible benefits.

What happens when we interfere with market forces? Everything in an economy adjusts and changes in response. Understand this. Market forces never disappear, even though they are routinely dreamed not to be present. Command economies have market forces, same as free markets. Continue reading →

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