The Standard Of Living

Does the government have to intervene in order to improve the standard of living? Not necessarily, because the free market can also raise it.

Without capital goods (the equipment that makes production possible, such as backhoes, sewing machines, machines for the transportation of products, etc…) the standard of living falls because we cannot produce enough to keep people all having the same amount of daily living products as before.

How can we raise the standard of living without government intervention?

We would need more consumer goods. For this we need more capital goods to make production faster and more efficient—therefore producing more. To gain capital goods, we need more savings and investments, which come from business men in the free market being able to operate without interference.

This is how the free market can improve the standard of living.

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3 thoughts on “The Standard Of Living

  1. carmen gallego says:

    I think that private business is very good for a country. It shows the courage, creative mentality. The goverments not always help enough to the entrepeneurs. I am talking about other countries, I don´t know yours enough.
    Good essay.

    Like

  2. Marvin Edwards says:

    Private enterprise alone is insufficient to meet all public needs. That’s why we constitute governments. To attract private entrepreneurs a project must result in reliable profits in a reasonably short time. Things that may not be immediately profitable, like a system of public roads, or a national postal service, or public schools, may more quickly be addressed as government functions. However, this should not prevent private enterprise from entering the service area when ready to do so. For example, we have many private mail and package delivery companies today. We also have many private companies running public prison systems. And private schools have always co-existed with public ones.

    Like

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