Government Intervention in the Economy: Perspectives and Debates

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The chapter explores various viewpoints on government intervention in the economy, touching on theories such as the Austrian response, public choice theory, and the Cambridge Welfare School. It discusses the challenges of information and incentives in economic systems, debating whether government actions can surpass market outcomes through experimentation and the importance of insulating economic decisions from political incentives.

Economics students are often taught that government should intervene when there is market failure. But what about government failure? Should we expect government intervention to outperform market outcomes? Listen as Duke University economist Michael Munger explores the history of how economists have thought about this dilemma and possible ways to find a third or even fourth option beyond government or markets.