One for All or One for One
Jason George tackles the intricacies of tariffs and taxes and discusses the potential of a fair system that takes into account concentrated benefits and diffuse costs while dealing with the interests of the few vs. the masses.
Observers who dig even a little into government policy in areas like tariffs or taxes might note some peculiar features. Regulations are often crafted to provide benefits to a favored constituency, while the corresponding costs are borne by the broader population in some opaque way that individuals can’t discern. As a result everyone ends up paying slightly more for healthcare, or cars, or chocolate bars, while the folks who sell those things get some economic protection.
Topics covered include:
-The handshake problem
-Hidden group costs
-The cumulative effect of multiple narrow interests
Read the full article, The Collective Action Problem and True costs, on Jason’s website.