The main aim of this blog is to discuss areas where government involvement makes sense. While we agree that the free and unfettered market often provides the most effective way of allocating resources, we also believe that thinking the free market can solve every economic problem is naive and even dangerous.
With our writing we wish to impress upon you the important role that the government can play in the economy. The most obvious role of government is to circumvent market failures, which are usually derived from externalities or excessive market power. Beyond this, the government has a structural role. Government regulation and investment can be used to change the structure of the game that firms compete in, to the detriment or the benefit of society.
We also believe that government failure exists. Governments may have less information then other market players, and so might make the wrong choice. Furthermore, governments may come under the control of interest groups or ideology, and may no longer follow the objective of maximizing the true social welfare function. While we may mention this type of failure, it will not be our primary focus.
It is also important to note that we do not necessarily support the current scope and role of government. We are merely stating how certain government choices could improve social outcomes. The set of policies we would support is likely to be very different then those established under any nations government.
Lengo kuu la blogi hii ni kujadili maeneo ambapo ushiriki wa serikali una maana. """Wakati tunakubali kwamba soko huru na lisilo na vizuizi mara nyingi hutoa njia bora zaidi ya kugawa rasilimali, tunaamini pia kwamba kufikiri soko huru linaweza kutatua kila tatizo la kiuchumi ni jambo la ubinafsi na hata hatari." Kwa kuandika kwetu tunataka kukuhakikishia jukumu muhimu ambalo serikali inaweza kucheza katika uchumi. Jukumu la wazi zaidi la serikali ni kuzunguka kushindwa kwa soko, ambayo kwa kawaida hutokana na mambo ya nje au nguvu ya ziada ya soko. Zaidi ya hili, serikali ina jukumu la muundo. Usimamizi wa serikali na uwekezaji unaweza kutumika kubadilisha muundo wa mchezo ambao makampuni hushindana, kwa hasara au faida ya jamii. Pia tunaamini kwamba kushindwa kwa serikali kunapatikana. Serikali zinaweza kuwa na habari kidogo kuliko wachezaji wengine wa soko, na hivyo zinaweza kufanya chaguo lisilofaa. Zaidi ya hayo, serikali zinaweza kuwa chini ya udhibiti wa makundi ya maslahi au itikadi, na inaweza tena kufuata lengo la kuongeza kazi ya kweli ya ustawi wa kijamii. Ingawa twaweza kutaja aina hii ya kushindwa, hilo halitakuwa jambo la msingi tunalozungumzia. Ni muhimu pia kutambua kwamba hatuna lazima kuunga mkono wigo wa sasa na jukumu la serikali. Tunataja tu jinsi chaguzi fulani za serikali zinavyoweza kuboresha matokeo ya kijamii. """Seti ya sera ambazo tungependa kuunga mkono ni uwezekano wa kuwa tofauti sana na zile zilizowekwa chini ya serikali yoyote ya taifa."