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Re: Economic theory and politics.
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Originally Posted by Malvolio
Not even in economic theory. There are certain cases that can lead to a market failure. Like with public goods, natural monopolies, external effects, moral hazard, etc. Markets are very powerful tools, but we can't expect them to solve all problems. And that's the reason why there always will be the need of a limited public sector and government regulations.
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Indeed, Malvolio. I can't help but think that Russia's dismal failure with free markets thus far is due to a TOTAL LACK of regulation. If those who espouse neocon economic theories regarding absolutely free markets, look no further than the disaster that straddles the Urals.
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"The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbor to say there are twenty gods, or no God. It neither breaks my leg, nor picks my pocket."
Thomas Jefferson
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