{"id":36160,"date":"2018-08-15T01:00:43","date_gmt":"2018-08-15T05:00:43","guid":{"rendered":"http:\/\/quotulatiousness.ca\/blog\/?p=36160"},"modified":"2018-07-25T09:59:04","modified_gmt":"2018-07-25T13:59:04","slug":"qotd-state-economic-intervention-in-theory-and-practice","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2018\/08\/15\/qotd-state-economic-intervention-in-theory-and-practice\/","title":{"rendered":"QotD: State economic intervention in theory and practice"},"content":{"rendered":"<blockquote><p><strong>The economic theory<\/strong>: the state intervenes in the economy in order to prevent free-riding \u2013 in order to internalize externalities \u2013 in order to better ensure that all private parties pay the full marginal costs of their activities, and that all private parties reap the full marginal benefits of their activities \u2013 in order to promote competition \u2013 in order to protect the weak from the strong.<\/p>\n<p><strong>The political reality<\/strong>: the state intervenes in the economy in order to promote free-riding \u2013 in order to externalize costs and benefits that the market has reasonably internalized \u2013 in order to better ensure that politically powerful private parties escape the full marginal costs of their activities, and that politically disfavored groups be stripped of much of the marginal benefits of their activities \u2013 in order to promote monopoly \u2013 in order to render some people weak who are then pillaged by the strong.<\/p>\n<p>Don Boudreaux, <a href=\"http:\/\/cafehayek.com\/2016\/09\/41444.html\" target=\"_blank\">&#8220;Economists\u2019 Normative Case for Government Intervention is a Very Poor Positive Theory of that Intervention&#8221;, <em>Caf\u00e9 Hayek<\/em><\/a>, 2016-09-26.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The economic theory: the state intervenes in the economy in order to prevent free-riding \u2013 in order to internalize externalities \u2013 in order to better ensure that all private parties pay the full marginal costs of their activities, and that all private parties reap the full marginal benefits of their activities \u2013 in order to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":35193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,84,41],"tags":[645,727,692,469,661,793],"class_list":["post-36160","post","type-post","status-publish","format-standard","hentry","category-economics","category-government","category-quotations","tag-corporatewelfare","tag-cronycapitalism","tag-externalities","tag-monopolies","tag-regulation","tag-subsidies"],"jetpack_featured_media_url":"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2016\/06\/favicon.png","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-9pe","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/36160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=36160"}],"version-history":[{"count":2,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/36160\/revisions"}],"predecessor-version":[{"id":36162,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/36160\/revisions\/36162"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media\/35193"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=36160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=36160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=36160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}