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to use the phrase--this possibility of positive feedback--
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open space for constructive government action
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precisely so as to not judge with absolutism
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that in every case there would be desirable things for governments to do,
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precisely because of the expectational effects that you describe.
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It seems to me that before embracing moral hazard fundamentalism
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and the idea that if the government gets involved,
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then there will be expectations of the government doing things,
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and then if their expectations that the government's doing things,
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people will respond to those expectations
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and then it'll surely be bad.
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Before embracing that idea,