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The poor: the society agrees to it has the right to force of all to pay for, that
Not to be injured by an evident poverty. No, follows from the theory
Hayek, the state depersonalized help to poor men sends to them false
Signals: not to earn, not to do savings, to destroy families, to waste time
On standing in turns behind grants and inquiries. These signals are so strong,
That hammer and without that in already weak signals of the market inducing poor men
To address to useful and it is better than paid activity. Result
State monetary "demand" for poverty will be only its increased
Manufacture. And it must be said that examples of large-scale programs of the help
To poor men, in particular in the USA, completely confirms this conclusion.
Let's notice, however, that the given theoretical conclusion is not applicable to "piece" job
With poor men which is carried out by the private charitable organisations.
From Hayek's theory follows that state intervention in freedom of the contract
Transactions leads to economic mismatches and losses, as signals,
Sent by the customer, are deformed by other, more powerful source -
Machinery of state.
So, support by the state of one of the parties of the transaction a way, for example,
Establishments of the minimum wages or the special rights of consumers, not
Will bring advantage neither to its both parties, nor a society as a whole.
Especially harmfully operative state intervention. In this case
Market agents cannot distinguish the truthful market information in
Unpredictable state "noise" accompanying it, and the market
It will be disorganised.
Last statement has the important application to monetary circulation sphere. In
The past issue activity was regulated by the state with a view of
Increases in incomes of treasury. In this century according to its general doctrine
Nature corrections, began to regulate monetary circulation operatively for
"Improvements of the market and correction of its lacks": stimulations economic
Growth, struggle against unemployment, etc. These actions have, however, far-reaching
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