Government planning and detailed control of economic activity lessens productive innovation, and consumer choice. Good, better, best, are replaced by "approved" or "authorized." Friedman shows how "established" industries or methods, seek government protection or subsidization in their attempts to stop or limit product improvements which they don't control. Friedman visits India, Japan and U.S.
Interestingly enough, Donald Rumsfeld is part of the ensuing discussion when he was a titan of industry and prior to his stint as Defense Secretary.
The Grouch,
ReplyDeleteWhat do you think is the answer? Is it deregulation or altered regulation?
Roshawn,
ReplyDeleteI'm an optimist and a free market person. I believe in the ingenuity and the work ethic of Americans. I support free trade and think Americans can compete with anyone in the world. I believe that individuals make more intelligent decisions with their money than bureaucrats in Washington, DC. Few in DC are smart enough to make rules that don't distort the marketplace and cause many unintended consequences and behaviors.
I believe government's role is the set the rules for commerce so that both parties in a transaction or a contract know what to expect and what their legal remedies are should one of the parties not live up to the agreement. If they try to do anything else, they inevitably pick winners and losers, and protect entrenched interest, and in general corrupt and distort the marketplace. I think they should set the basic rules of how to conduct business and then get out of the way.