Thursday, March 4, 2010

The purpose of government is not to ensure the financial well-being of its citizens, but rather to maintain order.

What is the government? There are so many concepts and doctrines explaining the meaning of this word. The pivotal element of this definition are the functions of the government. The only purpose of creation of the government is to make it to fulfill the functions private sector cannot perform.

There is an opinion that the purpose of the government in not to ensure the financial well-being of its citizens, but rather to maintain order. I think that today in the conditions of global economical downfall almost nobody will agree with this statement. All the taxpayers know that the amount of taxes allows to the government to finance a plenty of social projects. And I cannot agree that maintain of order and the reduction of violence crime rate are the only activities deserving sponsorship.

I think that government should care about the financial well-bring of its citizens. Especially it should be concerned about children and retired people. I believe successful government cannot let the children strive, live in the street and do not get the access to education. Also people should be able during their working time to save enough money to provide a up-to-level standard of living for the rest of their life. In case if government takes the responsibility of accumulation and distribution of the retirement money it has to make sure that retired people can buy food, medicines and pay their rent. In this case I would like to provide an example. In Russia government takes control over retirement money, it takes the whole amount as a part of taxes and manage it. Only government can determine how much a person will get paid when he is retired. Honestly I do not think that this function of the government is performed effectively in Russia. There are a lot of striving poor retired people. And it is very difficult for me to see an old women who cannot allow candies in the shop or an old an old man who cannot buy medicines necessary for maintaining his health. And those people worked and paid taxes the whole life!

The second example I would like to provide is a fiscal policy of the government. I am a 100% sure that government should be responsible for currency rates and the level of inflation in the country. Only government has enough resources to maintain stability in which business thrives. And in 1998 during default in Russia people almost overnight lost all their savings. Is that a stimulus for farther development of the business? Do people really want to work when they do not know what happens tomorrow.

So, I never can agree with the statement that the modern government is not ensure the financial well-being if its citizens, but rather to maintain order. Maybe this statement can be useful for another types of societies, but not for a modern one. Well, maybe for native of Australia people in the year let's tell 1450 the government should maintain the order only. They did not need any centralized control and were not involved in any type of international activities. But today the world faces much more global problems which are so complicated that cannot be solved without active government interference.

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