Theory of Government in Economy

Theory of Government in Economy

The main reason for the government intervention in the economy is poverty alleviation. The government is not a good economist and cannot improve the situation. The government is generally an economic nuisance to the nation, but if the government is a good policymaker, it can improve economic life. Reduce taxes and the role of government and boost the economy, but it cannot keep markets stable. With the introduction of the principle of fictitious prices in this regard, we will face the calculation of total price and made assets in the macroeconomic structure, for example, investing in corporate stocks will increase by reducing the investment account tax per share of the investing company from the net profit of the invested company. Assets and liabilities are primarily based on the exchange rates at which the transfer took place, but under no circumstances should goods be recorded and measured exceeding the cash value of the purchase. As we see in the crisis of Iran in 1397-2018, the measurement, identification and sale of assets is more than the cash value of the registered purchase.