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On the "Malfunctions" of the Government and the Possible Solutions

Yang Long

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Abstract

The malfunctions of the government originate from its own defects and its improper intervention in economy. The first solution is to avoid its over-stepping its authority and absence. The principle is that the government should help rather than replace the market. The mechanism of competition and the market-oriented government should be established. An incisive mechanism should be adopted within the government, which will help the government think like an enterprise. The government should try to avoid its intervention in economic affairs. The solution to the inefficiency and unfairness caused by the government's redistribution policy relies on the reduction of the operation costs of the public welfare system. The solution to the unfairness originating from the policy-control by the interest groups depends on the revision of the rules for making public policies as well as the control of legislation and policy-making decisions to achieve a balance between the government and the market.

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What this paper is about

The malfunctions of the government originate from its own defects and its improper intervention in economy. The first solution is to avoid its over-stepping its authority and absence. The principle is that the government should help rather than replace the market. The mechanism of competition and the market-oriented government should be established. An incisive mechanism should be adopted within the government, which will help the government think like an enterprise. The government should try to avoid its intervention in economic affairs. The solution to the inefficiency and unfairness caused by the government's redistribution policy relies on the reduction of the operation costs of the public welfare system. The solution to the unfairness originating from the policy-control by the interest groups depends on the revision of the rules for making public policies as well as the control of legislation and policy-making decisions to achieve a balance between the government and the market.

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Available abstract

The malfunctions of the government originate from its own defects and its improper intervention in economy. The first solution is to avoid its over-stepping its authority and absence. The principle is that the government should help rather than replace the market. The mechanism of competition and the market-oriented government should be established. An incisive mechanism should be adopted within the government, which will help the government think like an enterprise. The government should try to avoid its intervention in economic affairs. The solution to the inefficiency and unfairness caused by the government's redistribution policy relies on the reduction of the operation costs of the public welfare system. The solution to the unfairness originating from the policy-control by the interest groups depends on the revision of the rules for making public policies as well as the control of legislation and policy-making decisions to achieve a balance between the government and the market.

Key concepts: Government failure, Economic interventionism, Legislation, Inefficiency, Government (linguistics), Redistribution (election), Public economics, Market failure

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