Sunday, August 12, 2012

Market distortions

Neoclassical economists bemoan government intervention in the economy through  taxes, subsidies, quotas, price controls and the like. These distort the functioning of the free market.

The corollary, however, is the distortion of government and representative democracy by money, lobbying and incentives.

If business wants government to stop distorting its market then shouldn't government require that business not distort representative democracy?

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