Government efforts to correct market failures make things worse

Shankar Vedantam – Taking More Risks Because You Feel Safe – washingtonpost.com

” “The research consistently finds that, in fact, government efforts to correct market failures have little effect, or actually make things worse.”

“There is a tendency for people to say, ‘If things are safer, then I will take more risk,’ ” he added. “It does not have to involve government interventions: Drugs are developed to reduce blood pressure, so people say, ‘Okay, I can eat more, and it does not matter if I gain weight, because I can take this pill.'”

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