Government Failure

By Econ70 | 09/27/2011

Government action is touted as a solution to “market failures” like imposing a tax on polluters to make them aware of the costs they impose on those who inhale their fumes. But, the cure (government intervention) may be worse than the ailment (the market failure). This is because there is also “government failure.” So, before…

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Cottage Cheese Boycott

By Econ70 | 06/27/2011

Greetings from Jerusalem! Amazingly, the big issue here is the high cost of cottage cheese! An 8 oz tub costs $2, twice the price it is in Europe. Consumers are outraged and are boycotting all cottage cheese. The high price is the result of a panoply of monopolies and cartels that dominate a wide range…

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