Economic Logic continued...

by Rick Lowe (http://www.weblogbahamas.com)

You might recall I asked this question on Thursday past:

Why do governments wish to challenge companies they believe are "too big" through anti-trust legislation and want to bail out others because "they're too big to fail"?

Well I received a few private e-mails with some answers.

Here they are, in no particular order:

a. We don't want them to get too big to fail?
b. A rational explanation for the irrational is that humans are perverse for no rational reason.
c. 1. Governments do what the majority of the electorate want
    2. They are trying to stay elected and safeguard their own jobs and in the end do what they are pressured to do.
    3. Governments end up doing contradictory things trying to keep the majority of voters happy. Governments should facilitate not dictate.
d. Because  99% of the time Government's left hand never knows what the right hand is doing (notwithstanding the right hand is not always" right")
e. People who ask that type of question do not vote for mainstream politicians. Therefore, logic is not relevant.