Consider the following as it relates to reliability in many RTOs: “Markets work best when decision-makers bear the consequences of their choices. “Internalizing externalities” — say, making companies that discharge pollutants into a river pay to maintain it — is cited as a just cause for taxes, subsidies, and regulation. Most economists continue to teach, write, speak, and podcast as if this textbook prescription for government intervention is a reliable-enough description of reality.
But real-world government intervention routinely does the opposite. It takes costs and benefits that individuals would otherwise experience as consequences of their own choices and shifts them onto other people. In other words, the government regularly “externalizes internalities,” for which we pay the price.”
https://thedailyeconomy.org/article/when-government-separates-choices-from-consequences/
