To Serve and Protect
What do we think about governmental functions in our lives? In other words, what every government ought to do for the citizens? The government must serve and protect them so that to be re-elected next time, let’s say. It’s not the absolute truth, but it seems so. However, government provides not only safety and stability of citizens’ lives. More precisely, government provides not only citizens with these commodities, but enterprises as well. It is called ‘governmental policy’ and it concerns how the government serves and protects the national economic agencies. The protectionism policy is concentrated on the national industry’s well-being and prosperity by limitation of import and export stimulation. Tax freedom, advantages, quotas are the main tools for protectionism policy implementation. And what can we see in the end? Normally the absence of balance takes place. In a short-term period, enterprises do well, export rises, import declines. But the more enterprises export, the more they earn, the higher people’s salary is and the more their willingness to buy is! It’s a kind of a joke, but the limitation of import causes more import! Scarcity of supply appears in spite of high demand, because usually people don’t want to buy only national products, they want to try something new and something better. That’s why in a long-term period protectionism leads to scarcity though the main goal is to eliminate it. It’s a paradox of the governmental hand, but it’s an obvious example of how protection cannot protect. On the other hand, if government didn’t try to protect the national industry, the market waves would cause a catastrophe. The situation is following: if national enterprises are not competitive enough to fight against import – the prices are high or the quality is low, or supply is not enough, or all of them take place, cheap, high-quality products will flood the market and exclude national industry from the national market! It means that...
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