jueves, 5 de noviembre de 2009

Theory of the political supremacy, on the economics subordination

The state is the main economic actor. It does not matter the economic model: in the capitalism of free market, in the moderate socialism and, obviously, in the communist regimes.
This reflection is very important because it let to be aware of the true reality. The free market is an illusion. It does not exist. The states adopt the principal economic decisions still in the most advanced capitalist societies.
The free market is an appearance. Who determine the economic model? Who determine the fiscal, the financial and the monetary policy? Who decide the commercial policy, the regime of imports and exports? Who decide the policy of prices, the minimum wage and the policy of employment? Who decide the agricultural, industrial and environment policy?
You know the answer. And this confirms the economics subordination thesis. The politicians have in his hands the most important economical decisions in all the countries.
The politicians are the lawmakers and the laws define the organization and the functioning of the society.
The entrepreneurs and the workers are essentials for the economic development but its actions are conditioned by the state; their freedom is relative and limited. One entrepreneur needs the permissions and the licenses of the state for developing its business. Without those permissions and licenses none entrepreneur can realize its activities.
The business climate is determined by the big official’s policies. The state must exert their authority, however, sometimes adopt an attitude of indifference toward the other actors of the economic process; when this happen the consequence is the economical disaster. The recent financial crisis is a good example of that indifference.
But when the state exerts their role of supervision and control of the economic activities the situation is different and the society receives the correspondent benefits.
The great mistake of the last years has been the lack of control on vital sectors as the financial system. The balance between control and freedom is the key of the economic development.

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