The Scope of Interventionism

Ben, it's not surprising that the number of interventions extends beyond any single account and it is good to include various forms of corporate subsidies in the category of interventions. The problem with analyzing the effects of interventions is that they rarely involve proximate cause and effect and often involve opportunity costs, which go unseen. In fact, that is one of the reasons why I'm comparing them to the butterfly effect.

That said, there is no economic or ethical problem with large profit margins unless they are being maintained through interventionism. Entrepreneurial profits are by their very nature ephemeral because they are a signal and motivation for competitors to enter the market, which increases supply, reduces profit margins, and lowers the price of consumer goods.

Marc Porlier | May 9, 2007 - 9:41am

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