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This is very unlikely to happen in today's economy, because of externalities in production and the inability to predict the future.
The main argument for dirigisme is based on a central authority directly controlling quantities of goods demanded and supplied. This authority must be benevolent, all-knowing and all-powerful in order to improve the market. This form of government also has its faults. There is no proof that the government will be more successful in foretelling the future than individuals. Outcomes based on one forecast could be much worse than a large number of participants in a market economy, because it is like putting all your eggs in one basket...
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Common topics in this essay:
- Canadian Income Tax I
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