How Risk Fuels a Healthy Economy

Published: Jan. 22, 2020, 12:41 p.m.

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Allison Schrager joins Brian Anderson to discuss how risk propels economic growth and why government efforts that go too far to mitigate risk undermine America\\u2019s economic vitality.

\\u201cRisk, for better and worse,\\u201d\\xa0writes\\xa0Schrager for\\xa0City Journal, \\u201cis at the heart of economic growth, and successfully apportioning it\\u2014not avoiding it\\u2014is the key to prosperity.\\u201d While government has a role to play in managing risk, the U.S. economy has thrived by trusting markets to allocate it efficiently. Overly intrusive efforts to reduce risk in the economy\\u2014such as California\\u2019s new law regulating freelance or \\u201cgig\\u201d work\\u2014may prove counterproductive to workers of all incomes.

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