The more government, the more poverty | A más gobierno, más pobreza

Editorial, El Dia:

As the government runs out of money, its defects begin to become more clearly visible: there is no diesel, debts increase, there is a shortage of dollars, the inability to attend to emergencies such as drought, lack of water, serious fires and political discrepancies also arise that in the past were resolved with a few bank notes.

The government had five times more financial resources between 2006 and 2014 and the situation of Bolivians did not improve in that proportion. There were some advances as a result of the repartija, but insignificant compared to the damage caused by waste, the lack of a productive model and the absence of people who can lead true public policies that help overcome real problems.

In other words, the government does not work in good times or in bad times, it does not work in good times and much less in periods of scarcity, so… what is it good for?

The Swedish writer, author of the famous best-seller “Economy for All” demonstrates in great detail that government interference makes people poorer and the greater the intervention, the greater the poverty, as demonstrated by regimes that promote a massive concentration of economic activities in the hands of the state. García Linera, the brain of the “process of change” dreamed of 70 percent, the closest thing to Cuba, where there is practically no private property and the citizen cannot even satisfy his hunger by throwing a hook into the river, because he risks getting imprisoned.

But there is no need to talk about extremes to observe the pernicious role of government in people’s lives. Public administration, whatever it may be, discourages production, since it alters the productive structure, negatively influencing creativity and innovation. Regulations orient businesses towards sectors that bureaucrats decide capriciously and market information is discarded, which translates into the waste of valuable opportunities for the generation of wealth.

The government has a wrong concept of value, which is almost never oriented towards satisfying consumer needs. The result is useless or low-quality products, as can be seen in the dozens of state companies created by the MAS, which produce poorly, expensively and without any sense of benefit to the public.

Governments often place barriers to the most competitive and in-demand activities, which creates obstacles to continuous improvement. The regulations create an environment conducive to complacency and mediocrity, since there is no measurement of costs and benefits, personal satisfaction or the quality of life of the people affected by the prohibitions and the establishment of environments of privileges and monopolies that are very expensive for the citizen.

Where the government gets involved, the search for excellence is eliminated, meritocracy is killed, the space for the creative, the productive is restricted and, by seeking a false balance, to combat inequality or seek social justice, the only result achieved is the multiplication of poverty.

Unemployment Poverty

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