Friday, August 26, 2011

Three Mountains (5) - No Collusion

To succeed in the Kingdom Economy, businesses will have to provide goods or services that people want. A business cannot force people to buy things, so if people do not want their products, the business will fail.

A major problem with the modern economy is that businesses collude with the government to obtain a privileged position. Most business regulations have the effect of protecting an incumbent business from competition. Businesses frequently ask the government to protect them from competition from imports. They always claim to be acting in the interest of their nation, but the owners of the protected business always benefit the most.

Collusion between business and government is always dangerous. When a business gains the support of the government, it is able to use the coercive powers of government to change what consumers buy. This may be good for the business, but consumers lose their freedom. As the Kingdom of God advances, the central government will wither away. Collusion between business and government will become impossible.

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