YES! Herein lies the problem of government participation in market-places. The risk is transferred to the public domain and absorbed by taxpayers. The cost is seen as… bum bum buuuuuuum… asset inflation.
Gambling is fun. Gambling with other people’s money is more funner. Especially when you don’t bear the consequences.
“Moral hazard refers to the tendency of individuals to engage in riskier behavior or make less effort to prevent losses when they are protected from the consequences of their actions…”
YES! Herein lies the problem of government participation in market-places. The risk is transferred to the public domain and absorbed by taxpayers. The cost is seen as… bum bum buuuuuuum… asset inflation.
Gambling is fun. Gambling with other people’s money is more funner. Especially when you don’t bear the consequences.
“Moral hazard refers to the tendency of individuals to engage in riskier behavior or make less effort to prevent losses when they are protected from the consequences of their actions…”