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Getting it right

Published Sunday, April 01, 2007

Does an informed public make the right choices? Well, it all depends. That is, it depends on whether the choice makes you a winner or a loser. Recently, the public made three choices that created both winners and losers: They prefer less fuel-efficient cars, but for reasons unrelated to fuel efficiency. They want cheap capital, regardless of the fine print in the contracts they have to sign. They want alternative fuels, but not those that are most efficient. I think we need to establish “Labbe's Law of Public Choice.” (No ...

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