Government Intervention and the Structure of Social Capital

Christopher Coyne analyzes the effects of government interventions and the social capital. He emphasizes in the economic calculation that is possible through private property, which generates markets, and subsequently, generates prices that point out the opportunity cost to individuals. He discusses the results of such interventions and shows how it distorts the relative process of capital structure, also explaining that since government is non-profit, economic calculations cannot be engaged, and as a result the resources are not efficiently allocated; interventionism misrepresents the relative prices of the capital structure. Coyne presents two critiques to understand the dynamic of interventionism, the Austrian political economy and the public choice critique, both based on knowledge and motivational assumptions. Finally, he mentions that interveners are unable to assess the exact results of their intervention because of the complexity of the economy.