The decision about what is the best form for a specific task is not something to be derived from theory in advance—it’s emergent from market competition.
Instead of cracking down on tax evasion and the shadow economy, Italy’s new government needs to rethink its longstanding policies in order to bring about a real economic recovery.
Scarcity gets converted to abundance through the price mechanism, which functions as long as the economy is based on property rights, the rule of law, and free exchange.
By requiring non-profits to report certain donors' names to the IRS, it opens the door for political persecution, which is not an unreasonable concern.
In decreeing that certain power plants must be saved from closing, the ability of the power grid to withstand rapidly changing conditions will be weakened.
In opening its doors and Wi-Fi networks to non-customers, Starbucks gets to two-for-one bump of positive public perception and the possibility of tax-funded subsidies.