Sunday, June 22, 2008

Political instability <-- Govt. intervention in markets


The woes of governments faced with frequent strikes and riots, complaints and political instability, is one that stems essentially with a government policy of meddling in the economy.

Certainly, for various reasons, governments try to interfere with the workings of the economy, be it to correct market failure, or simply a politically attractive move to gain more power and support. But governments frequently fail to consider that there are very little things in life that only affect 2 people engaged in a trade. Choices made often affect some other third party. In this case, what about government failure?

In trying to meddle with the economy, the government has also taken on the responsibility for scenario of failure. People will blame the government if things go wrong. We are certainly a bunch of people who loves to complain alot. The government simply can control so many things. Consider if the government has one less job to do, that is, the trouble of trying to correct the market. Essentially, allow the free market to work on its own. Nothing is ever perfect, nor utopian. Certainly, mistakes will be made, pain will occur, suffering will occur. But that will be the most optimal level given that the market is allowed to work on its own, and the government simply provides the rule of law, and the enforcement of privacy.

Never seen God interfere to prevent us from sufferings and pain.

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