INTERMEDIATE

Ratchet Effect

A term coined by economist Robert Higgs that describes the problem in governance that arises when government intervention increases during crises such as wars, natural disasters, or economic depressions.  After the crisis government meets resistance in reversing the intervention, creating a situation where government intervention rarely returns to pre-crisis levels, which lead to a constant ratcheting up effect in growth of government intervention over time.

 

Robert Higgs - Liberty and the Long Run Growth of Government

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