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International trade precisely same, as well as in trade between the different
Provinces. If free trade between ten provinces
Promotes their prosperity too it is possible to tell and about free trade
Between the world countries.
But if trading restrictions interfere with economic prosperity,
Why so many countries resort to them?
The answer to this question is simple: it to someone is favourable. Trading restrictions
Are favourable to manufacturers (and to suppliers of their resources) to the detriment of consumers.
As a rule, representatives of making branches - businessmen and
Workers - are well organised and politically strong, while
Consumers are separated. The groups united by the general interests, have
- political weight - so, can catch more means for
Election campaign, and, means, and voices. Therefore politicians are inclined
To listen to such groups, and sensible economic reasons
Lose to desire to gain a political victory.
Economic progress and state role
The state protecting the law and order and giving the blessings, which
The society cannot receive "in the market", promotes well-being of all
The countries, BUT...
The state - a plug not for everyone flanks It cannot be
It is used for correction of all lacks of a society
The price of the state taxation
Groups of interests can use the political mechanism of the state,
To gather tax bearers and consumers
The state creates often budgetary deficiency menacing to economy
Redistribution of means of a society by the state promotes them
Costs of redistribution of incomes much more exceed benefits of those to whom
Redistributed means intend
Centralised planning - only substitution of the power of the market
The political power, the leader to empty waste of resources and
To economic decline
The competition between the authorities as is important, as well as a competition between firms
The competition of the authorities among themselves and with private enterprises forces
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