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It cuts both ways. Take a heavily state-controlled market like the entire US system during and after WWII and claim the gains are due to the free market.


It's true that we should be wary of the post hoc, ergo propter hoc fallacy. In this case, I think the right lesson is that markets are so robust that they can tolerate a lot of abuse before buckling. For example, to bolster agricultural prices during the New Deal, the federal government paid farmers not only to stop growing crops, but to plow perfectly good crops under. Frédéric Bastiat himself (of broken window and candlemaker petition fame) couldn't come up with a better reductio ad absurdum, and yet it was implemented as real policy in a time of mass hunger. Nevertheless, America, and the world, survived and prospered. Recall also that even the Soviet Union, with an economic system about as bad as you can imagine, still lasted ~70 years.




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