Unable to compete with cheap, government-subsidized services designed for the low end of the market, entrepreneurs find they must turn to higher-end customers who will pay more. Some wrongly interpret this as proof that markets are more expensive than government services.
Predrag Rajsic
Predrag Rajsic is a postdoctoral researcher in the Department of Food, Agricultural, and Resource Economics at the University of Guelph in Ontario, Canada. See his blog.