Intervention - Revision history

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	* [[Wikipedia:Prohibitionism\|Prohibition]] means that the government outlaws a certain use of certain resources. Again, it proclaims itself the co-owner of all resources that could be put to the prohibited use. For example, if it can prohibit the production and sale of alcoholic beverages.		* [[Wikipedia:Prohibitionism\|Prohibition]] means that the government outlaws a certain use of certain resources. Again, it proclaims itself the co-owner of all resources that could be put to the prohibited use. For example, if it can prohibit the production and sale of alcoholic beverages.

	The citizens still have ownership and control of their property, but they have to share them to a degree with the government and its agents. Increased interventionism increases the share of government control of resources, without outlawing other people's simultaneous control of these same resources. But the forced nature of the co-ownership itself is not a matter of degree. It is a categorical and essential feature of any intervention.<ref name="Hulsmann_Hazard">Jörg Guido Hülsmann. [~~http~~://mises.org/story/2935 "The Political Economy of Moral Hazard"], Mises Daily, April 19 2008, referenced 2010-01-16.</ref>		The citizens still have ownership and control of their property, but they have to share them to a degree with the government and its agents. Increased interventionism increases the share of government control of resources, without outlawing other people's simultaneous control of these same resources. But the forced nature of the co-ownership itself is not a matter of degree. It is a categorical and essential feature of any intervention.<ref name="Hulsmann_Hazard">Jörg Guido Hülsmann. [https://mises.freecapitalists.org/story/2935 "The Political Economy of Moral Hazard"], Mises Daily, April 19 2008, referenced 2010-01-16.</ref>

	==Interventions and Moral hazard==		==Interventions and Moral hazard==
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	==Regulatory capture==		==Regulatory capture==
	{{Main\|Regulatory capture}}		{{Main\|Regulatory capture}}
	According to the Chicago School economist [[Wikipedia:George Stigler\|George Stigler]], "as a rule, regulation is acquired by the industry and is designed and operated primarily for its benefits."<ref name="ONeill_capture">Ben O'Neill. [~~http~~://mises.org/daily/3304#_ftn8 On "Private Tyrannies"], Mises Daily, January 22, 2009. Referenced 2010-07-21.</ref><ref name="Stigler_capture">George J. Stigler. [http://faculty.msb.edu/murphydd/CRIC/Readings/Stigler--Th%20of%20Econ%20Regulation%201971.pdf "The theory of economic regulation"] (pdf), The Universityof Chicago, referenced 2010-07-21.</ref> Under this theory of [[regulatory capture]], an industry or some portions of an industry cultivate government to obtain laws and rules that favor the industry. The government trades favors for what it wants. Politicians gain political contributions, side payments, and votes for being seen to control the industry. The industry captures the regulators.		According to the Chicago School economist [[Wikipedia:George Stigler\|George Stigler]], "as a rule, regulation is acquired by the industry and is designed and operated primarily for its benefits."<ref name="ONeill_capture">Ben O'Neill. [https://mises.freecapitalists.org/daily/3304#_ftn8 On "Private Tyrannies"], Mises Daily, January 22, 2009. Referenced 2010-07-21.</ref><ref name="Stigler_capture">George J. Stigler. [http://faculty.msb.edu/murphydd/CRIC/Readings/Stigler--Th%20of%20Econ%20Regulation%201971.pdf "The theory of economic regulation"] (pdf), The Universityof Chicago, referenced 2010-07-21.</ref> Under this theory of [[regulatory capture]], an industry or some portions of an industry cultivate government to obtain laws and rules that favor the industry. The government trades favors for what it wants. Politicians gain political contributions, side payments, and votes for being seen to control the industry. The industry captures the regulators.

	This analysis can be expanded. The first step of obtaining favors can be called "baiting the trap." But matters do not stop there. The trap is set when the industry becomes comfortable with its subsidy, tax break, tariff, exclusive position, license, or whatever. It then begins to extract monopoly rents and to lower product quality. This then leads to further steps such as public outcry and a government demand for the industry to police itself. Then come crisis, further regulatory intervention, and eventually a government stranglehold over the entire industry via a panoply of boards and price controls. This is when the trap is sprung. The market is replaced by government power and bureaucrats. Government, its aim being control, traps and captures the industry.		This analysis can be expanded. The first step of obtaining favors can be called "baiting the trap." But matters do not stop there. The trap is set when the industry becomes comfortable with its subsidy, tax break, tariff, exclusive position, license, or whatever. It then begins to extract monopoly rents and to lower product quality. This then leads to further steps such as public outcry and a government demand for the industry to police itself. Then come crisis, further regulatory intervention, and eventually a government stranglehold over the entire industry via a panoply of boards and price controls. This is when the trap is sprung. The market is replaced by government power and bureaucrats. Government, its aim being control, traps and captures the industry.

	In the shorter term, the interest groups use the state against the public. In the longer term, the state and its bureaucrats rule the roost. In the end, the government bureaucracies expand. Paperwork and soft jobs rule the industry, innovation and competition are eclipsed, and the public suffers from poor product quality and high prices.<ref name="Rozeff_regulation">Michael Rozeff. [~~http~~://mises.org/daily/2320 "Who Captures Whom? The Case of Regulation"], Mises Daily, September 28, 2006. Referenced 2010-07-21.</ref>		In the shorter term, the interest groups use the state against the public. In the longer term, the state and its bureaucrats rule the roost. In the end, the government bureaucracies expand. Paperwork and soft jobs rule the industry, innovation and competition are eclipsed, and the public suffers from poor product quality and high prices.<ref name="Rozeff_regulation">Michael Rozeff. [https://mises.freecapitalists.org/daily/2320 "Who Captures Whom? The Case of Regulation"], Mises Daily, September 28, 2006. Referenced 2010-07-21.</ref>

	==References==		==References==
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	==Links==		==Links==
	* Interventionism as a [[Wikipedia:Interventionism (politics)\|political]] and [[Wikipedia:Economic interventionism\|economical]] concept on Wikipedia		* Interventionism as a [[Wikipedia:Interventionism (politics)\|political]] and [[Wikipedia:Economic interventionism\|economical]] concept on Wikipedia
	* [~~http~~://mises.org/daily/3239 Government Intervention and Market Volatility] by Benjamin Weingarten		* [https://mises.freecapitalists.org/daily/3239 Government Intervention and Market Volatility] by Benjamin Weingarten
	* [~~http~~://mises.org/daily/1773 Why Intervention Persists] by Ludwig von Mises, March 2005		* [https://mises.freecapitalists.org/daily/1773 Why Intervention Persists] by Ludwig von Mises, March 2005
	* [~~http~~://mises.org/daily/1662 The Spectrum Should Be Private Property: The Economics, History, and Future of Wireless Technology] by B.K. Marcus, October 2004		* [https://mises.freecapitalists.org/daily/1662 The Spectrum Should Be Private Property: The Economics, History, and Future of Wireless Technology] by B.K. Marcus, October 2004
	* [~~http~~://mises.org/daily/4586 Not Exactly Sweet Reason] by Gary Galles, July 2010, about the sugar policy of the USA		* [https://mises.freecapitalists.org/daily/4586 Not Exactly Sweet Reason] by Gary Galles, July 2010, about the sugar policy of the USA
	* [~~http~~://mises.org/daily/4579 The Antiregulation Case] by Eric Perkerson, August 2010		* [https://mises.freecapitalists.org/daily/4579 The Antiregulation Case] by Eric Perkerson, August 2010
	* [http://www.forbes.com/sites/warrenmeyer/2012/03/08/when-bad-things-happen-to-supposedly-good-legislation/ When Bad Things Happen to (Supposedly) Good Legislation] by Warren Meyer, March 2012		* [http://www.forbes.com/sites/warrenmeyer/2012/03/08/when-bad-things-happen-to-supposedly-good-legislation/ When Bad Things Happen to (Supposedly) Good Legislation] by Warren Meyer, March 2012

	[[Category:Interventions\|*]]		[[Category:Interventions\|*]]

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	~~{{Stub}}~~

	An '''intervention''' is the intrusion of aggressive physical force into society; it substitutes coercion for voluntary actions.		An '''intervention''' is the intrusion of aggressive physical force into society; it substitutes coercion for voluntary actions.

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	An '''intervention''' is the intrusion of aggressive physical force into society; it substitutes coercion for voluntary actions.		An '''intervention''' is the intrusion of aggressive physical force into society; it substitutes coercion for voluntary actions.

	Private individuals may illegally use force, but empirically, most interventions are performed by States, since the [[State]] is the only organization in society legally equipped to use violence and since it is the only agency that legally derives its revenue from a compulsory levy. Therefore, the analysis mostly concentrates on government interventions.<ref name="Rothbard_Intervention">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap12a.asp "12. The Economics of Violent Intervention in the market"], [[Man, Economy and State]], online version, referenced 2010-01-16.</ref>		Private individuals may illegally use force, but empirically, most interventions are performed by States, since the [[State]] is the only organization in society legally equipped to use [[violence]] and since it is the only agency that legally derives its revenue from a compulsory levy. Therefore, the analysis mostly concentrates on government interventions.<ref name="Rothbard_Intervention">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap12a.asp "12. The Economics of Violent Intervention in the market"], [[Man, Economy and State]], online version, referenced 2010-01-16.</ref>

	{{See also\|Interventionism}}		{{See also\|Interventionism}}

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	* [http://mises.org/daily/4586 Not Exactly Sweet Reason] by Gary Galles, July 2010, about the sugar policy of the USA		* [http://mises.org/daily/4586 Not Exactly Sweet Reason] by Gary Galles, July 2010, about the sugar policy of the USA
	* [http://mises.org/daily/4579 The Antiregulation Case] by Eric Perkerson, August 2010		* [http://mises.org/daily/4579 The Antiregulation Case] by Eric Perkerson, August 2010
			* [http://www.forbes.com/sites/warrenmeyer/2012/03/08/when-bad-things-happen-to-supposedly-good-legislation/ When Bad Things Happen to (Supposedly) Good Legislation] by Warren Meyer, March 2012

	[[Category:Interventions\|*]]		[[Category:Interventions\|*]]

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	Private individuals may illegally use force, but empirically, most interventions are performed by States, since the [[State]] is the only organization in society legally equipped to use violence and since it is the only agency that legally derives its revenue from a compulsory levy. Therefore, the analysis mostly concentrates on government interventions.<ref name="Rothbard_Intervention">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap12a.asp "12. The Economics of Violent Intervention in the market"], [[Man, Economy and State]], online version, referenced 2010-01-16.</ref>		Private individuals may illegally use force, but empirically, most interventions are performed by States, since the [[State]] is the only organization in society legally equipped to use violence and since it is the only agency that legally derives its revenue from a compulsory levy. Therefore, the analysis mostly concentrates on government interventions.<ref name="Rothbard_Intervention">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap12a.asp "12. The Economics of Violent Intervention in the market"], [[Man, Economy and State]], online version, referenced 2010-01-16.</ref>

			{{See also\|Interventionism}}

	==Classification of Intervention==		==Classification of Intervention==

John James: Misesified

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	Fifth, the government does not find that all industries are equal prey. It has an incentive to control those industries (a) that can't escape as easily from the country and (b) for which there are fewer substitutes. At the time the US government began to control the railroads, autos and airplanes didn't exist. And the large fixed capital investments of the railroads within the continental United States made them good fixed targets. Similarly, medical services have to be delivered to individuals on the spot within the country's borders, and home medical devices like those today were not widespread in 1910 — although there have always been home remedies.		Fifth, the government does not find that all industries are equal prey. It has an incentive to control those industries (a) that can't escape as easily from the country and (b) for which there are fewer substitutes. At the time the US government began to control the railroads, autos and airplanes didn't exist. And the large fixed capital investments of the railroads within the continental United States made them good fixed targets. Similarly, medical services have to be delivered to individuals on the spot within the country's borders, and home medical devices like those today were not widespread in 1910 — although there have always been home remedies.

	Sixth, when over-regulation occurs and the trap is sprung, the industry may try to escape overseas if it can or the customers will take their business overseas if they can. They will search for lower-cost places to do business. Many clear examples occur under financial regulation because many elements of financial dealings can be transacted overseas. Ceilings on interest rates paid on deposits led at one time to dollars fleeing overseas, whereupon a eurodollar market grew up. [[~~Wikipedia:Sarbanes–Oxley Act\|~~Sarbanes-Oxley]] regulation leads to overseas listings or even incorporation. Excessive regulations of exchanges leads to lower cost trading venues in London, or else trading shifts to over-the-counter formats.		Sixth, when over-regulation occurs and the trap is sprung, the industry may try to escape overseas if it can or the customers will take their business overseas if they can. They will search for lower-cost places to do business. Many clear examples occur under financial regulation because many elements of financial dealings can be transacted overseas. Ceilings on interest rates paid on deposits led at one time to dollars fleeing overseas, whereupon a eurodollar market grew up. [[Sarbanes-Oxley]] regulation leads to overseas listings or even incorporation. Excessive regulations of exchanges leads to lower cost trading venues in London, or else trading shifts to over-the-counter formats.

	Seventh, if business escapes the country as in the case of some financial services, the government may again respond in order to maintain its control. One method of control is to form a political cartel with other governments. It is usually called "harmonization." The most heavily regulating government will try to get the other governments to "improve" their regulation, that is, to copy that of the heavy regulator. This occurs in the guise of labor, safety, and environmental standards, for example.		Seventh, if business escapes the country as in the case of some financial services, the government may again respond in order to maintain its control. One method of control is to form a political cartel with other governments. It is usually called "harmonization." The most heavily regulating government will try to get the other governments to "improve" their regulation, that is, to copy that of the heavy regulator. This occurs in the guise of labor, safety, and environmental standards, for example.

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Links: External Links to Links, replaced: ==External links== → ==Links==

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	{{Reflist}}		{{Reflist}}

	==~~External links~~==		==Links==
	* Interventionism as a [[Wikipedia:Interventionism (politics)\|political]] and [[Wikipedia:Economic interventionism\|economical]] concept on Wikipedia		* Interventionism as a [[Wikipedia:Interventionism (politics)\|political]] and [[Wikipedia:Economic interventionism\|economical]] concept on Wikipedia
	* [http://mises.org/daily/3239 Government Intervention and Market Volatility] by Benjamin Weingarten		* [http://mises.org/daily/3239 Government Intervention and Market Volatility] by Benjamin Weingarten

Six: /* Classification of Intervention: bolding */

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Classification of Intervention: bolding

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	Three distinct types of intervention can be identified by the manner in which they affect individuals: autistic, binary, and triangular.		Three distinct types of intervention can be identified by the manner in which they affect individuals: autistic, binary, and triangular.

	*Autistic intervention occurs when an intruder restricts a person's use of his body or property in a certain manner.<ref name="Rothbard_Intervention" /> A common example of this is in the prohibition of possession of narcotics. Autistic intervention is also commonly exerted by private individuals in property-destroying acts such as vandalism, battery, and murder.		*'''Autistic intervention''' occurs when an intruder restricts a person's use of his body or property in a certain manner.<ref name="Rothbard_Intervention" /> A common example of this is in the prohibition of possession of narcotics. Autistic intervention is also commonly exerted by private individuals in property-destroying acts such as vandalism, battery, and murder.
	*Binary intervention occurs when an intruder forcibly establishes a relationship or compels trade between himself and another person.<ref name="Rothbard_Intervention" /> The most ubiquitous example of this is [[taxation]], where governments coerce citizens into paying [[money]] to them in exchange for public services of the government's choosing. [[Slavery]] is another form of binary intervention.		*'''Binary intervention''' occurs when an intruder forcibly establishes a relationship or compels trade between himself and another person.<ref name="Rothbard_Intervention" /> The most ubiquitous example of this is [[taxation]], where governments coerce citizens into paying [[money]] to them in exchange for public services of the government's choosing. [[Slavery]] is another form of binary intervention.
	*Triangular intervention occurs when an intruder forcibly establishes, or forbids, a relationship between two or more economic actors.<ref name="Rothbard_Intervention" /> Price controls, which restrict trade, and compulsory automobile insurance, which compels trade, are two common examples of this.		*'''Triangular intervention''' occurs when an intruder forcibly establishes, or forbids, a relationship between two or more economic actors.<ref name="Rothbard_Intervention" /> Price controls, which restrict trade, and compulsory automobile insurance, which compels trade, are two common examples of this.

	==Types of Interventions==		==Types of Interventions==

Six: Adding classifications of interventions

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Adding classifications of interventions

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	Private individuals may illegally use force, but empirically, most interventions are performed by States, since the [[State]] is the only organization in society legally equipped to use violence and since it is the only agency that legally derives its revenue from a compulsory levy. Therefore, the analysis mostly concentrates on government interventions.<ref name="Rothbard_Intervention">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap12a.asp "12. The Economics of Violent Intervention in the market"], [[Man, Economy and State]], online version, referenced 2010-01-16.</ref>		Private individuals may illegally use force, but empirically, most interventions are performed by States, since the [[State]] is the only organization in society legally equipped to use violence and since it is the only agency that legally derives its revenue from a compulsory levy. Therefore, the analysis mostly concentrates on government interventions.<ref name="Rothbard_Intervention">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap12a.asp "12. The Economics of Violent Intervention in the market"], [[Man, Economy and State]], online version, referenced 2010-01-16.</ref>

			==Classification of Intervention==
			Three distinct types of intervention can be identified by the manner in which they affect individuals: autistic, binary, and triangular.

			*Autistic intervention occurs when an intruder restricts a person's use of his body or property in a certain manner.<ref name="Rothbard_Intervention" /> A common example of this is in the prohibition of possession of narcotics. Autistic intervention is also commonly exerted by private individuals in property-destroying acts such as vandalism, battery, and murder.
			*Binary intervention occurs when an intruder forcibly establishes a relationship or compels trade between himself and another person.<ref name="Rothbard_Intervention" /> The most ubiquitous example of this is [[taxation]], where governments coerce citizens into paying [[money]] to them in exchange for public services of the government's choosing. [[Slavery]] is another form of binary intervention.
			*Triangular intervention occurs when an intruder forcibly establishes, or forbids, a relationship between two or more economic actors.<ref name="Rothbard_Intervention" /> Price controls, which restrict trade, and compulsory automobile insurance, which compels trade, are two common examples of this.

	==Types of Interventions==		==Types of Interventions==