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Quotation of the Day…

… is from page 101 of the 2010 Revised Edition of James D. Gwartney’s, Richard L. Stroup’s, Dwight R. Lee’s, and Tawni H. Ferrarini’s Common Sense Economics:

In a democratic setting, when a majority, either directly or through their elected representatives, adopts a policy, the minority is forced to pay for its support even if they strongly disagree.  For example, if the majority votes for a new baseball stadium, a housing subsidy program, or the bailout of an automobile company, minority voters are forced to yield and pay taxes for support of such projects even if they are harmed.  The power to tax and regulate makes it possible for the majority to coerce the minority.  There is no such parallel coercive power when resources are allocated by markets.  Market exchanges do not occur unless all parties agree.  Private firms can charge a high price, but they cannot force anyone to buy.  Indeed, operating without government assistance, private firms must provide consumers with benefits that exceed the price charged in order to attract customers.