Why...Why...and Why...?

Question

Why do some people believe that not everything can be left to the free market but that governments also have a role to play in encouraging a positive "investment Climate"?..can u give me any reason...please

Answer 1

Because there are free rider problems, issues of public good and issues where necessity outweighs profitability.  Example:

-Military defense.  If a company provided it, how would they charge for it?  There is no way to quantify how military defense monetarily benefits you and no way to sell it to individuals (because anyone who said no and refused to pay would still receive the benefit).  

-Public good: Why did the hole in the O-Zone diminish greatly? Because we banned CFCs at a governmental level. What is the purpose of the World Health Organization, to pursue vaccines and cures for illnesses that are not profitable but are extremely damaging (like malaria).  How about asking yourself why it is that vaccine programs are provided by the government?  If people couldn't afford vaccines and they were not provided, disease could very easily spread throughout cities. Here's another great one for those who argue "the government which governs least governs best."  Hurricane Katrina was a perfect example of what an impotent government does, and more importantly, what it doesn't do.

-Profitability issues: How would anyone justify NASA.  It's a program that pursues science for the sake of science.  That being said, microwave ovens and communications systems, freeze drying, velcro, and a number of other indispensable technologies have been derived from NASA programs.

Answer 2

It happens.

Answer 3

I cannot answer why.  Here's my theory.  If I can do it, let me.  If I can't, let the city.  If the city can't do it, let the county.  If the county can't do it, let the state.  If the state can't do it. let the feds.  This would leave the feds with nothing to do and that's the way it should be!

-MM