Artificial economics, explaining how government interference alters free markets and leads to negative economic outcomes.
1. Definition of Artificial Economics: Artificial economics occurs when the government manipulates market processes, which leads to unnatural behavior among buyers and sellers.
2. Example of Electric Vehicles: A current illustration is the ending of government subsidies for electric vehicles, resulting in manufacturers and dealers facing unsold inventory. When reliance on government support ends, businesses can struggle.
3. Utility Monopoly Issues: There are concerns about utilities like Pacific Gas and Electric (PG&E) being held accountable for their failures, as customers expect them to manage their own costs without passing them to taxpayers.
4. Rent Control Consequences: Rent control measures in places like Berkeley have created market distortions, leading to housing shortages as investors pull out and apartments are held by former tenants, impacting new renters.
5. Minimum Wage Debate: The imposition of minimum wage can hinder young, inexperienced workers from entering the job market, contradicting the natural supply-and-demand of labor.
6. Reparations Discourse: The article criticizes the idea of reparations, arguing that the descendants of freed slaves should not expect compensation based on historical injustices that occurred many generations ago. The author highlights instances of other immigrant groups succeeding without similar reparations.
The article argues that continued government interference in the economy leads to artificial constructs that disrupt natural market functioning. Issues like electric vehicle subsidies, rent control, minimum wage, and reparations are cited as examples of how such policies can fail and create economic hardship rather than prosperity.
https://www.americanthinker.com/articles/2026/01/welcome_to_artificial_economics_101.html
No comments:
Post a Comment