How much control should our
government have over our economy? Should they completely control it,
monopolizing the supply of the market? Or should they let the market be free,
letting the suppliers compete in order to find the equilibrium price?
I believe
that our markets should be free of government intervention. Without
monopolization under the government’s hand, people are incentivized to find
their comparative advantage in the economy. If people are doing what they are
good at, they will always be improving and inventing more efficient ways of
creating their product. This will result in higher quality products. And if
there are multiple people all creating these products, that are constantly
becoming better and better in quality, these suppliers will compete in prices
with each other. This will increase national productivity which will force the
suppliers to compete in creating a product that costs less to produce and will
cost less to the consumer, which will naturally result in finding the market
equilibrium.
This is
proven throughout history, and will keep being proven through the future. North
Korea is a prime example of an economy that is controlled by the government and
is not improving. This is due in part to the lack of social freedom that
citizens have regarding their finances, as well as the lack of encouragement towards entrepreneurship
and specialization. Because of the suppression that the government has over the people and its monopolization of the market, the people of North Korea do not earn as much profit as they potentially could.
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