The Ripples of Government Intervention

Source: American Institute for Economic Research
by Vincent Geloso

“In one of his early works, Ludwig von Mises argued that mixed economies, those that can neither bear the labels of laissez-faire capitalism or socialism, were inherently unstable. His claim was that once a government intervention began, it foiled economic calculation in ways that altered behavior. Once unforeseen consequences of the intervention start revealing themselves, policy-makers must either intervene once more or roll back the policy. In the end, an economy can be free or it can be centrally planned. It cannot be a mixture of both.” (06/21/22)