Day 81: The Role of Government in the Economy

In one of the previous blogs, we explained how there's different degrees of government involvement in different economies.

The information within this blog will specifically relate to the role of government within the context of a free market system approach.

Supporters of the free market system see the private sector as way more efficient than the public sector/government because of its 'competitive nature'. So keep this in mind when reading the blog.

The role of the government within the economy is considered within four points:

1. The first point is that the government should not get involved in the production of good and services lol.
2. The market system / economy does however need the government in terms of providing a form of stability and certainty through laws, rules, regulation, monitoring and enforcement. These points need to be in place for firms and consumers to make contracts. Also think about for instance property and copyright laws.
3.  Markets do not always produce efficient outcomes, and sometimes the government requires to intervene to 'correct' the market failure (think Bailouts)

4.  It's generally acknowledged that markets produce relatively efficient outcomes but not equitable ones. So when society wants a higher level of equity as for instance in the form of a more equitable distribution of income -- then this requires government intervention. This is seen as a controversial topic within economics as our system is designed in a way where there is mostly always a trade-off between efficiency and equity

There are generally five ways in which the government can intervene within the economy:

1. A first way is through public provision of goods and services such as infrastructure and 'national defence'. This is done through either public ownership or by public financing within the production processes of the private sector (eg subsidies). In recent years it also has become more popular for the government to hire the private sector for the provision of public goods.

2. Another way in which the government can intervene is within its position as a market participant. The government is the largest employer of labour within the economy and as such it can through for instance its wage policies and other practices achieve certain objectives.

3. The government can also influence the economy through its expenditure/spending. Besides influencing the economy through its spending patterns of goods and services, it can also engage in something called 'transfer payments' -- these are basically payments where the government doesn't receive anything in return. Examples are subsidies, child support grants, disability grants

4. Another method is through taxation. Although taxations' primary purpose is that of government income, it can also be used to manipulate the economy (eg sin taxes on tobacco, alcohol or lower tax rates for smaller businesses). In those cases taxes function as incentives.

5. As mentioned before, the government is important to the economy for a rule of law point of view. Through laws and regulations the government can also impact the economy. Here consider minimum wages, anti-tobacco laws, minimum prices, etc.)

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Day 54: Government Intervention - Part 3

I commit myself to expose that any type of intervention within the current economic system completely useless – since we are changing some of the variables in the equation but the equation is still rooted within the same principle – as the principle of self-interest and gain – and whatever changes we implement within the system, will be rendered useless throughout time as self-interest will always prevail – as this is how we set up our system

I commit myself to show that the problem with economics is the very root, as the starting point of economics and the specific character role which has been assigned to humanity – where the starting point is to distribute limited resources in such a way as to attempt and satisfy unlimited wants of humans – where money is the deciding factor as to who gets to satisfy their wants/needs and who doesn’t – and where the human has taken on the role of the self-interested character who is allowed to do whatever it takes in the name of profit

I commit myself to expose that an economic system with the above equation and variables as its starting point can only result in disaster as it is based on unsustainable goals and the reckless/unreliable/irresponsible nature of the human being – having left out all and any consideration regarding any other beings but itself

I commit myself to expose that any action concerning change within the system for the betterment of Life on Earth is not in fact altruistic – as any change within the system is rendered useless by the overpowering authority which has been given to self-interest and the pursuit of happiness and so the only altruistic act, the only act of unconditional love would be the abolishment of the current world system and replace it with a system which is Best for All Life as the Equal Money System which Values Life, that which is real as the physical reality over Mind Delusions as Money

I commit myself to show that standing / support a cause which does not cause the replacement of the current world system is useless and will most likely only bring more suffering as the workings of the current world system as the reflection of the mind is not understood

I commit myself to the education of the human being so all may see/realise/understand how this reality actually operates as it is merely reflecting / mimicking the workings of the Mind


I commit myself to expose that we cannot sustain our current world system as it was not designed with sustainability in Mind and thus the best thing we can do is release ourselves from the current world system as it is a parasite sucking the Life out of Planet Earth and all the living beings as plants, animals and humans – and so I commit myself to remove the parasite and replace it with a system of Support as the Equal Money System where NONE are left behind

I commit myself to the redefinition of economics – where the starting point of economics is no longer that of the limited anthropocentric view of life, but a starting point of Biocentrism* where Life is put as the centre cause and where the Human no longer plays the role of Self-Interested Agent looking out to satisfy his own desires, but is placed in a position of Stewardship*/Custodianship – here to support other Life forms as itself within an Equal and One consideration and respect

*Biocentrism: Biocentrism states that nature does not exist simply to be used or consumed by humans, but that humans are simply one species amongst many,^[4] and that because we are part of an ecosystem, any actions which negatively affect the living systems of which we are a part, adversely affect us as well,^[4][5] whether or not we maintain a biocentric worldview.^[4] Biocentrists believe that all species have inherent value, and that humans are not "superior" in a moral or ethical sense

*Stewardship is an ethic that embodies responsible planning and management of resources.

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