Blinera Meta

Assignment #1

Governments are created by the vote of people. Government’s duty is to serve the needs

and improve the well-being of the people. It does that by securing the country, providing a legal

system, regulating the health system, stimulating domestic producers…the list goes on. The

governments are here to make our existence a little easier; the process of achieving this goal

however is not that easy.

Once in a while, the government faces difficulties in the policy making. For example in

the state of Aukonia, which is run by a coalition government of the Democratic Party and the

Agricultural Party, the Prime minister promised to improve the conditions of life, reduce

unemployment, and alleviate poverty. She plans to do that by attracting investment and fostering

the private sector. However, she promised to protect the domestic products in order to compete

with imports. That would be a very good decision if the government would have the sufficient

budget to subsidize the milk industry, as planned, and also the tomato industry which the biggest

part of the agricultural sector in Aukonia. Lacking the required budget the government would

have to raise taxes for the neighboring countries. Since one of the main government roles is to

maintain healthy, stable relationships with the neighboring countries deciding to raise taxes

would be damaging to the overall economy since they also threatened to raise taxes themselves.

So, every decision that is made in this point would harm one side and benefit the other, which is

the nature itself of policy making of the government.

Being in this kind of position the government should find a creative solution which would

benefit one side, in this case the domestic producers, and harm the least possible the other, in this
case our neighbors. Stimulating the domestic producers would be very beneficial in the long term

because that would decrease the rate of unemployment directly contributing on the wellbeing of

the people, competition would increase meaning the quality of domestic products would increase

too, and the prices would lower eventually, the producers would compete with foreign producers

outside Aukonia, and people would learn the importance of buying Aukonian. That would justify

the government intervention.

However, until this is achieved the customers would suffer increased prices of imported

products like milk, because an increase in the customs for the imports would immediately

increase the price. The government would fail at maintaining a stable relationship with

neighboring countries; they would increase taxes as well, which would be devastating in the long

run to the potential importers, which as a whole would suggest and justify the government’s non-

interference.

Policy making is not easy. Making a decision does not always mean the government has

made the right one, they try however, to make the ‘less-wrong’ decision in hopes that it would

contribute in the overall wellbeing of its people, that is why the government is there, at least that

is why we vote them to be.

*497 words