09 May 2010

Market or Government to bring about change?

“would you say it's easier to change things through government, through regulations? Or privately, through the market?”, asked Bix in her comment section on the post.

(in order to make sense of this post, you will have to refer to Bix's post )

I also agree with Caulfieldkid's comment a great extent. However, it is also the collective will – of the government – and I mean the political will, who has to change things through regulations.

It has been my observation that markets almost always takes advantage of the gaps between the laws.

Markets were created for a certain reason and as in case of food – additives were added for shelf life for 5 months (just a number) but if additives are added for increasing its shelf life of canned potatoes, beans or carrots for 5 years (another number),it changes the chemical composition of the vegetable/sea food and we are eating something that looks like vegetables/sea food – That’s where the problem lies and more.

Of course it is for the profits of the business man, because if the farmer does not have a good yield of potatoes this year (because of weather) and he has already sold it to the business man at a set price, as written in the contract it is profitable to the farmer. In another case a highly unexpected yield is profitable for the business man who now has more vegetables to be canned – he puts more additives and increases its shelf life.

But the fact is government and markets create a symbiotic relationship in order to reign! - Think Monsanto - the food terrorist.

Governments are elected representatives of the people, which means official power legally and have the opportunity to put laws and regulations to ensure maximum benefit to majority. And so yes, governments are responsible. But again governments also behave like markets. The government also want to remain in business as long as they can and they do not want to make their businessman who has supplied many campaign dollars unhappy.

We employ the government to office. The government does not elect us. And the government needs policing. - by the people, for the people and of the people. As I wrote before in one of my posts - change is a movement. The movement stops when the democratic process stops.

At least in the US,there is a process and a system.Governments can be motivated. you can go up to your senator and tell him/her not to sign so and so bill/initiate a bill – His votes for the next election is at stake. And each senator takes this seriously. Well, Americans have a choice and a chance.Because it is an economically richer country, even in its state of current recession, Americans have the energy to mobilize opinion, their offices will give them a day off, if they tell their boss that they have to go visit their senator – lobbying can also be used for good reasons and effectively.

Bix, when I started writing the answer to your question I thought I had an Indian perspective,but while writing I realized that – the common factors that make up the market and the government are similar in every country. Except the weather, the cultural, notions of freedom, political(india mostly have a socialistic regime and democracy is a stalemate) and social milieu differs.


Anonymous said...

After reading Atlas Shrugged although I agreed that free market is the best, it was still very obvious that in a country like India there was too much scope for a Fuedal kind of Capitalism to continue.

I agree with you about even the governments behave like markets. I feel we are fortunate that we can influence our representatives.... though in India I wonder how much really...

Anonymous said...

Read the comments in Bix's blog... I agree with you, governments and markets do create a symbiotic relationship and they reign... it's the same everywhere :(

Anrosh said...

As long as corruption in government is not punished, penalised - nothing will make india a better place. because though we are afraid to admit it or not a GOONDA RAJ, what we have now in india will NEVER WORK even for the middle class, the poor are treated worse than dogs - i don't blame the poor. some are poor - because they are honest and have integrity and are tired fighting - that is the case of the mighty india.

Vinod_Sharma said...

I agree. Corruption is the cancer and it is growing rapidly, with both the government officials and corporate executives enjoying the benefits, sometimes at India's expense but almost always at the expense of the aam admi.

Anrosh said...

vinod, Above all the "notions of freedom" have to be initated.

and a process be set up in india - where political leaders can be bought in communities and questioned by the people, nothing will change.

Arrogant political leaders in their khadi kurtas and Insecure, power hounding civil service guys needs to be brought before the people panchayat. - May be then things will start changing in india - but will businesses and jobs give the people a day off if and when this process starts ? -

large business do not want it to happen because they will have more competition ...the story goes on.

Indeed Mahabharata has never even started in India ! whom are we kidding.

And in the current system of things in india the common man are only specks of dust.

Bix said...

You gave me a perspective I didn't have. Where I think that government is a check for business, you added that the people are, in turn, a check for government.

When I add to that something else you said, that government and markets are in a symbiotic relationship, it gives me this impression that there are three legs, if you will, - the government, the market, and the people. And each leg must balance the other legs if we are to have a stable ... society? It's a great way of looking at it.

Anrosh said...

media is The 4th leg. they are equally powerful and more

Bix said...

So, you're saying the media has a different agenda or goal than the people? (Or the government or business)

Anrosh said...

media could be puppets of the government ( like in governments where censorship is high -eg; china) or markets - who ever is paying them - the nexus of politicians- corporates-media is famous

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