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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.

Part III.

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

To plunder

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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