Friday, July 21, 2006

First they have to get a clue.

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The Brookings Institution Press has a new offering, Antitrust Policy and Vertical Restraints. The description of the book includes this sage advice, "In order to formulate economically efficient policies, they (policymakers) must be able to identify and limit those practices that are likely to do more harm than good." Why make this hard? The simple solution is for policymakers to end their interventions in the market and let consumers and entrepreneurs solve - to the benefit of both parties - issues that may arise in exchange. It's either the participants in an exchange solving their own conflicts, or it's the policymaker via their henchmen - the bureaucrats - forcing a less-optimal exchange.

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