시장경제질서에서 정부실패의 원인과 정부개입의 폐해 = Reasons for Government Failure and Its Bad Effects in the Market Economy

다국어 초록 (Multilingual Abstract)

The main purpose of this paper is to illuminate theoretically and in a critical view what the interventionist of the economy and coercive system leads to. This paper tries to show why the big government cannot but fail and what bad effects it makes. The government intervention in a market economy system rests on the concept of the market failure. But this paper argues that on the contrary to what might be believed it cannot be the reason of government intervention and furthermore the concept is lack of clarity and based even on the wrong logics.
As soon as government intervenes in a market, conflicts are created, because each person or group may participate in a scramble to be a net gainer rather than a net loser. The conflict appears also on the scene. Every economic order has mechanisms and institutions to allocate scarce resources. However the way of resource allocation is totally different between by the market and by the government. Clashes arise when the rules, each of which has a different mechanism or function in resource allocation, exist in a economy. It results in market distortion or less market coordination, resource waste, deterioration of the distribution problem, and frictions among social classes. Another reason why an intervention coercive system makes more serious problems is in the fact that we cannot charge the government failure and the politicians and officials commit corruptions and illegalities with the high probability in comparison with the institution of market.
The results of the study suggest that public services should sharply decline and we should retrospect the economic thoughts of the early classical and the Austrian school economists.