Thursday, February 23, 2006

An Unsurpassed Definition of Economic Intervention.

One way of understanding intervention is to see how and where it appears. Using the divine economy model a straightforward definition of intervention, one that has not appeared in the economic literature yet, can be set forth.

Intervention is anything that disrupts the order (the market), the transformation (the capital structure), the law (property rights) or the human spirit (purposeful action).

Intervention hampers the flow of information, alters the perceived time horizon, weakens human rights, and discourages the human spirit. But the incredible force in the economy known as the tendency towards equilibrium makes all these consequences of intervention ephemeral. The moment intervention is stopped the economy heals itself. Then information flows, the time horizon dawns, human rights return, and prosperous encouragement of the human spirit reigns.

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