Government in the economy
act of faith
The growth of government intervention
in the economy is due to increased social inequality. Because few have much and many have little, the savings
destined to investment in society is sliding to meet the interest of those
few. In other words, economics does what is profitable and not
what is necessary, everyone needs to eat, but not everyone has money for
it. Demand is only effective with will and economic capacity. To have enough
for demand it is necessary to have power – money in the pocket. Yes, but
and the economic boom of agro – record harvests meet domestic and external
demand – always where there is demand – the economy does not study
geography, it does not know dividing lines of countries: supply and demand is
the great law of the economy. In fact, those who favor state
intervention only defend the state economy while they are in power. When they
move to the private sector they quickly become liberals. Everyone likes to
be on the side of the whip handle. Moving to the other end, they change their
minds.
Inequality is the central
focus. Governments start acting to make up for this. Let's look at
some examples.
Minimum wage – it seems reasonable for
politicians to try to increase it because they are unaware of the laws of the
economy. It is impossible to set a price for acts of political will. By
setting high minimum wages, the government removes from the dining table those
workers with lower schooling – some eat better, but there remains a crowd
of excluded, that the government itself will have to support with family
allowance, help for this or for that. More government becomes needed in
this case.
Fuel prices – the government seeks to keep
them under control to prevent inflation. Another impossibility: when a new
president comes, he changes rules. Commodity prices are defined by the
higher law of supply and demand, even if manipulated by international
oligopolies. This bankrupts companies if you insist on using it for
social purposes.
All government interventions in the
economy are a disaster – what worries most about this statement is the
invariability!!!!
Focus should be to mitigate inequality to put
everyone in the same starting position. A new Social pact having
nutrition, health and education to employees and dependents under the
responsibility of the company, buying at free market price and the government
reducing the corresponding taxation.
The total opening of the economy will
bring it to full productive employment and without any need of government
intervention. Who will solve our problems will not be the government
but the market economy or "His Excellency", the collective will.
Cordially
Ronaldo Campos Carneiro, a production
engineer, was a professor at USP/PUC, a project negotiator for the Brazilian
government with the World Bank, IDB and bilateral agencies. He was the
owner and executive of a private coffee and coffee machine company. Retired
from the Brazilian electricity sector.
http://rcarneiro4.blogspot.com.br
ANE - National Academy of Economics -
academic - chair 169
ABROL - Rotary Academy of Letters of the
Federal District - founding scholar
Author of the book – "Return
back to the origins to deserve a better future", a socioeconomic
essay of political theory. Released in Germany in several languages on
9/26/2018
Distributed by amazon, morebooks and www.editoramultifoco.com.br
Multifocus Contact - (21) 99964-6484
support@multifocohelp.zendesk.com
Nenhum comentário:
Postar um comentário