Glamor Economics

Chapter 145

Chapter 18 Section 7 The Legal System Guarantees Economic Construction—Legal Economy

A market economy is an economy ruled by law. There is some truth in this statement.The economic order of a society is mainly established and consolidated by legal norms and even by legal punishment. Without strict laws and regulations, the market will become chaotic.The Russian writer Krylov wrote these two fables in "Krylov's Fables":

One is "The Bear Takes Care of the Beehive".Beasts recommended the honey-loving bear to watch the beehive, but the bear guarded it and stole all the honey into its nest.After the incident was revealed, all the beasts punished it to confine it in its den for a winter.Originally, the bear was going to hibernate, and there was no need to return the honey. The punished bear lived happily ever after.

The other was entitled "Pike".A pike is guilty of a heinous crime and needs to be judged.The court consisted of two donkeys, two old horses, and two goats, and appointed the fox as the prosecutor.No one could point out any injustice in the trial, and the pike had no way of denying it, and was at first sentenced to be hanged from a tree.At this time, Prosecutor Fox became the key man. He said that for a guy like pike who has done so many crimes, hanging is too light, and he should be sentenced to an unheard of heavy sentence-let him drown in the river!The court accepted the recommendation and changed the sentence to drowning the pike in the river.

Fables are the refraction of human life, and the social phenomena satirized by Krylov in the fables are unavoidable facts in our real life.For example, fake and shoddy products are often exposed but emerge in endlessly.The benefits of breaking the law are far greater than the costs paid, and it is not uncommon to make and sell fake products.

A market economy is an economic operation mode and a competition platform that allocates social resources based on the market. The basic principles of market transactions are fairness, openness, and justice.Without laws, the market order will be in chaos.We know that a market economy is a competitive economy.It is one of the advantages of a market economy to achieve the survival of the fittest through competition and rationally allocate resources.However, market competition must be fair and legal, otherwise, the market mechanism may fail or be distorted.In market competition, some competitors do not hesitate to take risks in order to seek profits, and adopt various improper means to conduct or restrict competition, hindering normal market competition.At this time, it is necessary to use legal means to regulate and sanction abnormal competition and monopolistic behavior, and maintain fair and reasonable market competition.It's like a ball game, players must play according to certain rules.Without rules, the game cannot be played.Therefore, the legal system of the market economy is equivalent to the rules of the game, which is the guarantee for maintaining fair competition.

The more developed the market economy, the legal system must develop accordingly.Although our country is now in the primary stage of socialism, we must adhere to the principle that "the socialist market economy is a legal economy".

In the early days of the development of the commodity economy in the UK, there were many counterfeit and shoddy products, and it was quite common to fail to repay borrowed money.But when the law is strictly enforced, and those who manufacture and sell counterfeit products are punished to lose their fortunes, they will even become prisoners, and those who borrow and owe money will not only have their homes confiscated to repay their debts, but also go to prison. Who dares to flout the rules of the market economy?It is precisely in this way that the market order in the UK has become well-organized, and punishments have been severely punished according to the law, creating a civilized and honest UK.In Italy, famous international film stars have evaded taxes for many years, and were arrested immediately after getting off the plane. Who would dare to pay taxes according to the law?In Singapore, you can be fined S$[-] for spitting. Who dares to compete with the sacred law?
If there is a law that is not followed, the law becomes a straw man.If the government management department is limited to conducting surprise inspections on the market, and no one conducts daily product quality inspections on the market, I am afraid that fake and inferior products will continue to flow into the market.In fact, the solution to my country's market economy violations is very simple: we should intensify the crackdown on market economy violations, so that the cost of violations and crimes far outweighs their benefits.

In a socialist market economy, the government acts as the regulator of the market economy.While serving the market well, the government should also take up the "big stick" in its hand to crack down on illegal activities in the market, effectively maintain the order of the market economy, and create a good market transaction order for the society.

[links to related words]

Law and economics is also called economic analysis of law, law and economics.The theory of law and economics originated in the United States and has now become a legal school with international influence.The theory holds that all legal activities, including all legislation and judiciary and the entire legal system, are in fact playing the role of allocating scarce resources, so all legal activities can be analyzed and guided by economic methods.

There have always been two perspectives in the study of law and economics. One is the perspective of human law, which believes that law and economics is the study of law with economics; the other is the perspective of economics, which believes that law and economics expands the research object of economics , to bring issues in the legal system and other non-market fields into the perspective of economic research and explain them, and the latter is the mainstream view today.

(End of this chapter)