Zaterdag quote

(Y)ou need a lot more than “market failure” to have a successful government subsidy program of firms–you need massive externalities and precise, well understood targets. The garden-variety market failure that can be shown on a blackboard isn’t enough, in part because such arguments often underestimate the market and in part because they overestimate government.

Alex Tabarok (2022). Marginal Revolution: Chinese Industrial Policy is Failing

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