Sunday, September 7, 2008

Government Accomodation = Encouragement.

The title pretty much says it all. Often governments wish to accomodate for situations that shouldn't be there in the first place. However, government accomodation is tantamount to support. 

For example, when a government helps flooded communities near the mississipi, they are actually supporting development there. Similarly, when it bails out banks, it's encouraging risky investement.

However, without addressing the long term "encouragement" issue, the government is doing more harm than help.

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