On The Program Of Government Intervention

Economic law is the rational restriction of government in interfering economy as a criterion of governmental performance in economy. In some sence economic law makes economic policies become laws. Economic reason desides the choice of institution. That is to say, it will be influenced by theories in the social stage, to make and take action of economic policy in the same stage of a certain society. It is economy rationalization that decides the choice of policy. Economic theory is to reveal economic rules of modern phenomena So economic theory is meaningful to perfect basic theory in the economic law.The growth of government's intervention theory has gone through four stages: first, the theory from the government's interference of attaching importance to commerce to indulgent theory; second, the government's interference of negation and Keynesian Revolution; third, the reconstruction of government's interfering theory; last, the combination of state free management and government intervention nowadays.The four stages suggest the prime growth regularity about government's interference from certainty to negation and even to negation. However, the third stage seems the recurrence of the certainty stage, but in fact there is essential difference between the two stages. There are obvious differences in the nature, area, way and the important conflicts between the government's interference theory according to attaching importance to commerce and modern government's interference theory. Moreover, the modern government's interference theory confers the comprehension of program to government's interference. As far as the way of relative is concerned, some scholars think the program is very important during the establishing course of capitalistic market economy cosmos in Europe, American and Japan. By this way, a creeping revolution of law system has been finished in the transition of economic system.Beginning with the collective end of the prime society, thecountry directly governs, interferes with and takes part in some economic area as the regime and ownership of property. During the long history period, the government were guiding the economic coursing, but the phenomenon of the heavy conflict between market and government didn't come, because of the lower productivity and the absent market power. After the capitalistic society and system came out on the basis of the strong economic outcome of the industry revolution, the debate about "invisible hands" and 'tactile hands" of economic action between the market and government just has practical meanings.Surveying the just unfolding "debate between market and government" in the history of economics, I think it results from the different recognition of "market failures" and "government failures". Market failures come out during the process of market economic action, because the market has its own difficulties hard to retrieve; the government interfering results in government failures, because the government interfering has defects. The two parties devote themselves to make up their respective defects and relieve their pressure from each other.Let's think of it in another way. If judging from the history course of the country's development why the government carries out the indulgent economic system in the non-monopoly period is that the government negates itself. But why each country all over the world emphasizes the government's intervention in the economy is that the government negates itself again. That is to say, the present government's intervention to the economy comes from a second negation of the government itself. In fact, among all the influential factors of the modern economic process, whether the new conservatism or the government's intervention, the deep reason of government's intervention in economy is that government, by using the power, makes economy develop along the probable production border as possible as it can. That is, maximization of economic efficiency can be realized to a great extent through the government's intervention. From...