Re: Government intervention

[enilsson@xxxxxxxxxxxxxxx (Eric Nilsson)]

Reply to Herb:

I agree with you entirely.  These claims about information problems and rent
seeking are likely true.  I know you also agree with me (but others don't)
that some things the mainstream says are right.

A question which I don't have an answer to:

Do those heterodox economist who have models that indicate laissez-faire
policies are suboptimal -- and who argue for government guidance of the
economy -- what explicit or implicit theory of the State do they have?  How
would they counter the argument that, though they are right that capitalism
needs a good amount of help to performed well (or fairly), no government can
be trusted to follow these policies due to the information/rent seeking
problems the mainstream invokes?


Eric Nilsson
Department of Economics
California State University, San Bernardino
enilsson@xxxxxxxxxxxxxxx
909-880-5564