In addition, active economic government management has created various barriers to entry that have led to the creation of monopolistic and oligopolistic industrial structures. The tendency to rely on direct regulations for economic management has also produced widespread regulations of prices and quantities, which have created a distortion in the economic incentive structure. As a result, the individual economic agent has not been presented with sufficient motivation to economize and innovate.
Finally, as government intervention has become more widespread, thereby creating an excess demand for Intervention beyond its true capability or necessity, the effectiveness and therefore the credibility of government economic management policy has rapidly declined.
In addition, active economic government management has created various barriers to entry that have led to the creation of monopolistic and oligopolistic industrial structures. The tendency to rely on direct regulations for economic management has also produced widespread regulations of prices and quantities, which have created a distortion in the economic incentive structure. As a result, the individual economic agent has not been presented with sufficient motivation to economize and innovate.
Finally, as government intervention has become more widespread, thereby creating an excess demand for Intervention beyond its true capability or necessity, the effectiveness and therefore the credibility of government economic management policy has rapidly declined.
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