Proper role of government in the economy from "summary" of Economic Facts and Fallacies by Thomas Sowell
The government has a crucial role to play in the economy, but this role is often misunderstood or misrepresented. One common misconception is that the government must actively intervene in the economy to correct market failures. While it is true that markets are not perfect and can sometimes fail to allocate resources efficiently, the government's interventions are not always the solution. In some cases, government intervention can actually exacerbate the problem rather than solve it. For example, imposing price controls or regulations on businesses can distort incentives and lead to unintended consequences. This is because government officials do not have the same knowledge or incentives as individuals in the market, and their interv...
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