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Intervention of the Federal Government

The intervention of the federal government, which creates a particularly problematic form of intervention, seems to grow without limitation.

Intervention by the federal government can cause extreme problems in a system is complex as a national economy. Intervention by the federal government, which ultimately tends to be violent in nature, applies to all parts of the economy as if the system were homogeneous. In addition to the problems caused by any form of intervention in the markets, treating all parts of the economy the same causes particularly severe distortions in the normal process of resource allocation.

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