The private sector and the government must intersect. The government must intersect in pretty much everything because it seems to want to hold a dominating hand over everything including the private sector. Bush is a prime example of distorting means for the private sector to flourish, in a way through taxes. "Tax policy under Bush became a form of Robin Hood in reverse, giving to the rich and taking from the poor" (p.70). The push on tax policies effects everyone, including the private sector. Politically it made sense but what happens to the little guys? If everything became a huge governmental corporation, I believe there would be chaos economically. Another point made is through the Clintonomics which I believe we have lost sight of. Its states on page 69: "They would have to acknowledge that the market cannot do everything and that government is sometimes necessary to assist those whom markets have left behind." To me this shows an explosion of "hey don't forget the private sector we need them!" However through Clinton it was seen that the government was supposed to help the private sector as the big guys brought out the guns. Today there is a bill being passed called the Wall Street Reform Act that will bend banks to close up their availability to lend out to borrowers, causing problems for the private sector of real estate, mortgage brokers, lending officers, even smaller banks since banks rely on a flow of money to stay afloat. To me this is almost like the Walmart scenerio. Walmart comes to a town or city and puts up shop with lower prices and more products of all different kinds available. This causes many "mom and pop" shops in the local area to close making Walmart, and yes I am referring to Walmart metaphorically as the government, then becomes the sole money source for the town allowing it to make the rules that define the town's economy. That may be a little left side view but I think it brings some worry out. Any thoughts?
I completely agree with you, we can never forget about the little guys. In my blog posting i referred to page 56 of our book. Small firms would literally just get shoved out of the way if there was no interference with the government in the private sector. We must realize that government interference is not a bad thing. I know that the people want the power, but if we allow multiple corporations to merge, where does that leave the small businesses. JOBLESS! More and more people will be out of jobs without government interference, so i say the government must go hand in hand with the private sector. Unless we want the rich to keep getting richer and the poor to keep getting poorer i feel government is absolutely necessary to intersect with the private sector.
ReplyDelete