Public choice theory

0
899

At the heart of economic science, or if you will, social discipline, is the pursuit of human well-being in the broadest sense of the word. Rational allocation of scarce and limited resources has been a field of interest to human since ancient times. Every individual knows what is best for him, what alternative he prefers the most, what solution maximizes his personal well-being. Guided by these basic, almost instinctive human motives, the development of an economic theory on which the basic premise will impose a free flow of economic activity as the most efficient method of resource allocation seems obvious. Such a formulation of human as a selfish creature justifies the philosophical foundations of Adam Smith, who wrote in his An Inquiry into the Nature and Causes of the Wealth of Nations: "We will not turn to their humanity, but to their selfishness." We will never talk to them about their needs, but about their benefits. " Smith's "invisible hand" proved to be the most effective tool for allocation, but to private goods. Public goods, on the other hand, have proved problematic to fit into the ideas of liberal economists. The need for another theory is inevitable. It is the theory of regulation that aims to correct market failures by incorporating public interest. More importantly, the task of such a theory is to show and prove why regulation is needed in a market economy and what are the benefits of its application, and not just to try to justify it with market shortcomings.
The idea of elaborating on this topic arose from the curiosity about the possibility of convergence of the attitudes of the citizens of a society and their personal interest, and the interests of the creators of macroeconomic policies and the rules of market play, regulations, legal legislation and the like. Namely, I am personally interested in whether the term "public interest" is an ideal and utopian concept. If this is the case, if there is no public interest, we must appeal to the idea of ideals. If public interest is illusory, then justice, freedom, integrity… are also illusory.

Public choice theory

COMMENT

Please enter your comment!
Ве молиме внесете го Вашето име овде