Learning From Mistakes

Don Boudreaux says it well: political power doesn’t cure it’s holders of bad judgment. But there is a difference between political power and market power. When market participants make mistakes, the mistakes are punished. Markets “fail”, but they correct themselves. Political power holders also make mistakes, but those mistakes often go unpunished and can perpetuate themselves for a long long time. People (sometimes) learn from their mistakes; so do market institutions. Political institutions, if they learn at all, learn very slowly.

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