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Principle #07

  • Richard W Swinney
  • Jul 10
  • 1 min read

Governments can sometimes improve market outcomes.


The two rationales for a government to intervene is efficiency or equality.


Efficiency means society is getting the maximum benefits from its scarce resources.


Equality means those benefits are distributed uniformly among society's members.


Most government policies focus to enlarge the economic pie or changes in how the pie is divided.



THINK Republican Party (efficiency) versus Democrat Party (equality). All other political parties can be measured by these two.

 
 
 

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