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162. Benjamin Friedman — Religion and the Rise of Capitalism

The Michael Shermer Show

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Is There a Government Boost for Electric Cars?

Economists use the concept of externalities to argue for government intervention in an infant industry. In 17 72, scotland had experienced its worst banking crisis in two generations. If i didn't have a catalytic converter on my car, what would come out of the tail pipe would make a lot of other people worse off - not just me. That's what we call an externality and it's a prima facia case for government intervention.

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