terça-feira, fevereiro 17, 2015

Socialism (hearts) Economic Aggregation

How Economic Aggregation Hides the Problems of Interventionism:
The main point, however, is that to rely on aggregates as the focus moves attention away from individuals, who are the only ones who choose, act, and bear consequences. Even without further complexities and problems, that approach can hide everything from income redistribution between different groups (net taxes) to income redistribution within groups (minimum and living wage laws) to supply-side effects on production (taxes and means tested government benefit programs) to the impossibility of central planners directing an economy efficiently (with statistics that throw away details that are crucial to the creation of wealth) to the ambiguity of measures of the value of output (government production assumed to be what it cost). That is a lot to disguise or misrepresent, and such issues provide more than ample reason for suspicion whenever someone puts forth an argument from a major premise that “government aggregate X did Y, therefore we know that Z follows.”

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