Syndicate content

Add new comment

Submitted by Jishnu on

Oh, I agree with you, which is why I think this is a limit to empiricism. I think you HAVE to go from basic first principles and then move forward. But, ever here, reasonable people can disagree. For instance, should governments provide schooling, or finance it and leave provision to the private sector? The question then becomes whether the government is better as a regulatory state or a provider of education, which takes us back again to the empirical results and their limits. It's a hard one, and something we have been going around without clear answers on what can be done in the short to medium run. As I said in the blog, redistributing cash is one of the well recognized goals of government intervention, and fixing market failures is the second. It has to be a weird, weird world where we claim that the market will fix the market failures...