Market Intervention

Market intervention consists of the interference with the natural process of exchange. Intervention comes mostly from government. It leads to less efficient allocation of economic resources and the loss of liberty.

To understand the nature of exchanges in the modern world we must take into account the many forms of intervention. Violent intervention has become so pervasive that we must consider it in the background of every question about the process of exchange. We must ask, "Would we see a different—and arguably better—result without a specific intervention."

In this section we pick up our discussion of exchange—started in the first section, but with an eye toward how interventions affect those exchanges.


When the government “spends” (redistributes) money, it distorts the resource allocation that the market would normally perform.


By telling individual actors in the market what they can and cannot do, government interferes with the normal process of exchange.

Monetary Intervention

Intervention in the monetary system based on monetary policy and banking intervention.

Economic Crises

Studying economic crises can teach us a lot about the detrimental effects of market intervention.


This link will take you to post that I have made on The Free Market Center Journal regarding market intervention.

Market Intervention — Distorting market activities.