Thursday, September 04, 2008

Price: The Real Regulator

Talifaitasi W. Satele


If we do recognize that the population is getting out of control in our great territory, we should admit that this is largely the government's doing.

The federal government's grants, interest free loans, and tax exemptions for the canneries have largely subsidized what we have today. Without that subsidization, either prices for everything we have received before would have been higher or would never have been available in the first place.

To obtain a standard of living independent of the federal government would require a thriving private sector. And when we talk about the private sector, we're talking about individuals working for themselves or for each other in efforts to produce for themselves or to trade with one another.

That means paying for our own healthcare, education, telecommunication, electricity, broadcasting, loans, infrastructure, and proper governmental services. That means not having a government that redistributes wealth from federal taxpayers and competes with private enterprise and subsidizes poverty.

If we had to start from scratch and had to pay to build a modern economy ourselves, it would be more expensive/difficult to have larger families, more cars on the road, and more homes on less land.

We have seen the concept of higher prices reducing demand on a number of occasions at home. With gas prices going up, consumption went down plenty. When prices for rice imports shot through the roof, people turned to local produce and healthier alternatives.

And it's just sad that the very government that wants to control the population also wants to control the very mechanism (prices) that actually does the job. Hopefully, the ASG plans continue to sit on the shelf and collect dust.