GOVERNMENT INTERVENTION IN THE FREE MARKET 

Stage Three in the Life Cycle of Money

Tuesday June 4th, AD2007

We have been following the emergence of a new economy, where people collectively started producing various goods from their labour. This soon led to a market place where people traded the different things they were producing. The combined labour of the people in the economy applied to the natural resources around them increased the general wealth of these hard working people. Next money emerged freely to aid the free market process of buying and selling. The goods being bought and sold in the market place represented the stored wealth of the economy as they reflected the labour of those that had produced them. In the same way, the free market money that was now being used also had a high intrinsic value as it had been produced by the combined labour of men. 

Like all groups that apply the natural laws of free market economics together with hard work; our economy is now enjoying growing prosperity and an increasing distribution of wealth for all. The division of labour is increasing as people are finding opportunity by specializing in certain areas and pursuits, bringing yet new and different goods and services to the market. Trade from surrounding regions is increasingly being attracted to our market, and people are migrating to the area in search of new opportunity and a fresh start. 

Our economy is making the important and difficult transition from a newstart up economy to an ordered community, or what we know better as 'a society'. As population is growing there are new social needs. People want to be safe and live in peace. Codes of conduct and defined law and order are emerging as the shared values and communal rules of our fledging new society are being discussed, developed, written and enforced. 

In history, governments and rulers eventually surface in all developing societies. Sometimes it's as a result of that community looking for and appointing a judicial system and police force to protect and uphold common law and order. Other times it seems people simply want leadership 
and direction, and lack the ability to self-police and govern. And at other times, someone sees the opportunity to usurp power and seize it by force, imposing their rule over all others. Regardless of how governments start, they always end up taking the reigns of social and economic control, ultimately determining the current and future direction of that society. 

Again history is our great teacher. All economies, societies and civilizations are entirely dependent on the integrity of their government and rulers; it has been said, "as our rulers are, so we become" (1). 

Regardless of how our rulers start or how quickly they extend their powers, eventually they become heavily involved in the free market process. The day comes where the rulers of the economy walk into the market place and begin to legislate and dictate how it should operate. They begin to regulate trade, introduce trade tariffs and exchange rules. This is the inevitable Stage Three in the Life Cycle of Money, 'Government Intervention in the Free Market'. 

Sincerely - Philip Judge pjudge@anglofareast.com 
Skype Username : philipjudge

(1) History's repetitive pattern shows that fair and honest rulers have generally led their people into periods of peace and prosperity, while self-serving and unrighteous kings have moved the society towards economic and social downturn, hardship and ultimately violence. 

(2) http://www.anglofareast.com/images/LCM3.jpg