Traditional economists typically begin with the presumption that private, competitive markets are efficient and the desirable way to provide ordinary goods like groceries. Government should stick to where it is needed, these economists believe, like providing defense and environmental regulation.
But over the past 50 years, this presumption has been totally undermined, as we’ve come to understand better the many ways in which markets “fail,” especially in the presence of imperfect information. Even in the simple area of groceries, market incentives direct consumers to more profitable but less nutritious foods, contributing, for instance, to…
Read the full article at TIME.COM
