Imagining Solutions Beyond Economists' Studies and government intervention.

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The insight emphasizes the inadequacy of contrasting private enterprise with economists' ideal adjustments in their studies. Government authorities are unlikely to achieve or strive for this ideal due to factors like ignorance, information issues, democratic pressures, and personal corruption. Therefore, the focus should be on envisioning solutions beyond economists' theoretical studies and government intervention, as they may fall short in addressing market failures effectively.

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.