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they have a very static view of the world. They don't think about second order effects.
Indeed.
There's a good example of what happens in the "private sector". How many times have the airlines been bailed out by the gov? A few. Why? Because air travel is TOO IMPORTANT! But when you think about it what should have happened was that airlines should go out of business and people better at running them should take over. That isn't allowed to happen so we have a weaker system. Its second order. Its not obvious but when you think about it death is a part of nature and it leads to new life.