The True Cost of Government Intervention from "summary" of Economics in One Lesson by Henry Hazlitt
Government intervention in the economy often comes with hidden costs that are not immediately apparent to the public. While the government may intervene with the intention of providing benefits to certain groups or industries, the full cost of these interventions is often borne by the taxpayers and consumers in the form of higher prices, reduced competition, and slower economic growth. When the government imposes price controls, such as setting a minimum wage or maximum prices, it distorts the natural market forces of supply and demand. While these controls may seem beneficial in the short term for those who receive higher wages or lower prices, the long-term consequences include reduced employment opportunities and inefficient allocation of resources. This ultimately leads to a decrease in overall economic prosperity. Subsidies and tariffs are other fo...
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