"Small government, big market" ≠ "positive non-intervention policy"?
"Big market, small government" ≠ "positive non-intervention policy"?
"Big market, small government" ≒ "positive non-intervention policy "?
"Big market, small government" = "positive non-intervention policy "?
HKSAR's Chief Executive Donald Tsang said the philosophy of "big market, small government" has replaced "positive non-intervention" governorship. I was confused as a result of his such recent remark. I think the rationale of "big market, small government " should be equivalent to "positive non-intervention policy" or at least roughly equal in terms of economic jargon. I think Mr. Tsang is interpreting the same concept.
"Free market" operation means the allocation of resources of the economy reaches its equilibrium and optimal state through the non-intervened market mechanism.
In order to achieve the efficiency of allocation of resources, it is best to let the market (invisible hand) adjust itself. The size of government (visible hand) should be kept as small as possible of course in this way.
Therefore I see no difference between the two concepts (or the two slogans?) in terms of their definitions.
The great philosopher of the classical liberalism -- F. A. Hayek who opposed the socialism and command economy wrote in his book "The road to serfdom" that for the non-restrained expansion of the government authority and the use of a "planned" economy system to solve the three basic economic problems (what to produce, how to produce and for whom to produce), the eventual outcome is disastrous and leading to the road of serfdom...
His prediction has been testified by the fact of the failure of the implementation of socialism and the collapse of communism in the past decades in Mainland China, Indochina, USSR and Eastern European countries. The situation is even worse in Cambodia under the ruling of Khmer Rouge's Pol Pot regime in the 1970s. It was catastrophic as a human purgatory created that time. It is even worse than that leading to the road of slavery.
Socialism is no way out! The policy of government intervention is no way out!
In fact, the role of an efficient governmental body is only as a football notary in formulating and promoting market competition. Making relevant rules and regulations as well as clearly defining property rights are the right things for the government to do. In a nutshell, the government is neither the Buddhist goddess nor the all mighty God.
by tcwong© http://wongtc.blogspot.com/
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