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.

Redistribution

The forcible redistribution of economic resources — primarily by governments — causes harmful distortions in markets and the waste of precious resources.

Regulations

Government regulation interferes with people's right to interact freely in an open market.

Monetary

Monetary intervention represents one of the more sinister influences on a market economy. Interference in the money supply cause distortions in money prices the laying false information to economic actors.

Bank Legislation

The power of banks and the Federal Reserve system depends on authorities granted to them by banking legislation. Understand how banks operate under federal (and sometimes state) charters.

Federal Government

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

State & Local

The construction worker will insert a summary as soon as he has the page contents outlined.

Economic Curiosity

Have any of government's interventions in the free market aroused your curiosity? Why do they do such dumb stuff?