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Editor's Pick

Gov. Newsom Appeals to the Sunk Cost Fallacy to Promote the Failed Bullet Train

In the world of private enterprise, business owners pay attention to costs already incurred that cannot be recovered, also known as “sunk costs.” Government officials, however, see sunk costs as an incentive to promote public projects where costs clearly outweigh benefits.

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For those of you who are a bit more steeped in technical analysis, you’ve likely heard of Dow Theory. A set of principles developed...

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These subsidies exemplify crony capitalism. The Austrian School of economics defines any subsidy as government intervention in the functioning of the economy.