The Effects Of Government Action

The effects of government action mean that the external influences which the government action have on the other economic entities on the market. Although an acknowledged theoretical system has not yet formed system, the study of the effects of government action has long been favored by foreign countries. Public choice school is one of the most important schools which have made a great contribution to the study of this field. It points out that although the market failure to provide the necessary conditions for government intervention in the economy, government intervention in the economy and the market can not fully compensate for defects, because the government is not ruled by the politicians who only seek to maximize the public interest or the social welfare, members of government are the same as the individuals of the market, they are all rational "economic man." Public choice theory offers a unique perspective, directly shift the focus of our research on the settlement mechanism of the negative effects of government action. In our country, the theoretical study of the effects of acts of the government has little importance. This is mainly because we have been dependent on the use of moral restraint and self-consciousness to resolve the problem of the excessive economic intervention of government. Therefore, most of the studies on the effects of the government just stay in its characteristics, classification, and measures. The study on the problem of"how to do"is less. Even if some have covered only a general idea to solve it, they lack of operational practice, very few people put forward the settlement mechanism of the negative effects of the government from the aspect of improving and strengthening constitutional construction.The paper is divided into three parts. The first part is of "the effects of government actions on the basis of theory." The government acts on the main market, other economic effect must be on the premise of the made of government action, so this first part began with an analysis of the cause for government action. Next, in order to improve the content of the effect of government action, this article will give a comprehensive analysis from the characteristics, classification and evaluation these three aspects of the effect of government action. The second part is "the negative effects of the cause." Although the market's failure provides the necessary conditions for government intervention in the economy, but it is not the sufficient condition. In the process of the government intervention in the economy, there is an increasing awareness that the government's actions in the market have a positive effect on other economic entities but at the same time it is accompanied by the production of the negative effects. According to the methodology of the public choice school on the basis of "individualism" and the principle that"Economic Man" has limitations, the article has made a deep explanation of the causes of the negative effects of government, from these aspects such as the internal effect, leasing, the failure of the public policy, and the low efficiency in the supply of public goods. The third part is "the negative effects of the settlement mechanism." how can we reduce as much as possible negative effects of government action? Based on the comparison of several traditional solutions, this paper has proposed that we should establish an effective mechanism to help resolve the problems of the negative effects of the government from the aspect of improving and strengthening constitutional construction.