There are many things that can affect our economy but with politics, history is constantly repeating itself and whatever decisions current politicians make, affect our economy the same way they did years ago.
So, apparently we never learn! But, have you ever asked yourself what these mistakes are? I think that we should all be aware of these mistakes so that if we ever decide to become leaders of the countries we live in, then we need to be aware of these mistakes so that we avoid making them as well!
1. Regulating prices on items that are part of people’s basic necessities
Governments keep doing this and all they achieve getting is companies going broke from not having enough income to make the products whose prices were regulated in the first place. All that is achieved by governments when they decide to regulate prices, is generating long lines outside of stores and supermarkets for the product they regulated in the first place. So, this is obviously a big no-no if you want your country to have a healthy, monopoly free economy.
2. Corruption, corruption and more corruption
Has any country ever gotten anything good out of corrupt politicians? All that is achieved by corruption is increasing a country’s poverty rates, unemployment, law breakage, lack of basic services and lack of medicines.
If you need a clear example of how bad corruption can really get, take a look at how bad Venezuela is getting thanks to greedy politicians that are only looking out for themselves and not caring about Venezuelans one single bit.
This has turned the country into a hell hole with people constantly making long lines for food and medicines.
3. Regulating the competition
This is sort of linked to a government deciding to regulate prices on products. Why? Because regulating prices will basically create a monopoly and reduce competition to its most minimal expression. And we all know is, that a country with a good rising economy has some good old fashioned healthy competition among different companies within different industries.