false thoughts
Governance and Economic Policy Making at the Round Table by Feridon Ghazand and Musa Ghanijad.
Reza Tahamsavi/Editorial Secretary.
Hazlitt raises two issues in the economics book in one lesson; One is why states and governments favor the interests of certain groups over the general interests. That is, they meet the needs and demands of a particular group with their own economic policies and ignore the collective interests. The second issue is why long-term benefits are sacrificed for short-term benefits. Hazlitt raises issues regarding both of these concerns, many of which are still significant under the conditions. At the present time, we should read this book again based on the experience behind us.
Our economic crisis today goes back exactly to Hezlit's key words in this book, which say, the politician does something that the public is happy with in the short term, but because the cost of this work appears in the long term, later it becomes clear how bad this policy was. Like the binding pricing policy, which is the usual work of governments in Iran to prevent price increases. At the beginning, many people were satisfied with this policy and thought that the problem of high prices would be solved in this way.
In Iran's economy, we have many examples of short-term policies that at first seem to make everyone happy with their implementation, but in the long run, excessive costs rise for the entire country due to the disruption of the economic system. We have the same problem today. By using the resources of the central bank and the banking system, Mr. Medashkian's government gives subsidies to people and tries to stabilize the prices of basic goods. This policy may be pleasant in the short term, but in practice it leads to an increase in liquidity and a further increase in the rate of inflation; Inflation that is today on the threshold of three digits.
With the expansion of economic culture and knowledge at the community level, politicians can talk to people more easily and explain why the cost of electricity or gasoline should rise. People need to understand that distributing energy at a low rate and close to nothing will cause a deficit in the government budget and eventually create inflation that those people will pay many times over.