Kilroy Was Here
April 18, 2004
Chance and the Markets
One other role of government would be to try and mitigate as much as possible (without destroying the free market) the role of chance in the market. Oftentimes competitors lose in the market not due to their own inefficiencies but due to chance in the market place. As Keynes noted, "The markets can be irrational longer than you can remain solvent."
One notion of the government would be to mitigate the effects of chance. This would include a large estate tax for the wealthies people (winning the sperm lottery) and providing some sort of temporary living assistance to people training for new jobs. This could help alleviate the burdens suffered by those whose jobs our outsourced.
Just some quick notes for myself.
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