Correct, timely government intervention_其他_趣味英语-查字典英语网

Correct, timely government intervention

The government of Lanzhou could not have anticipated that its decision last week to cap the price of beef noodle, a regular breakfast of the Northwest China city's residents, would have yielded a by-product - food for thought.

After the local media reported that the price administration of the Lanzhou municipal government ruled that the price of a regular bowl of the noodle should not exceed 2.50 yuan (32 cents), commentators of traditional and modern media outlets across the country became excited. Criticizing the local government, they all used the same accusation: "Violation of market rules".

Though expressed in different ways, they all based their arguments on a common understanding, the rise and fall of the price of a commodity should be left to market forces, which exerts influence according to the fluctuation of supply and demand. If the price exceeds a certain level, consumers would shun the commodity for alternatives; the dwindled demand would then force the price to return to a reasonable level. This is one of the core theories of classical economics.

However, a complete or perfect model of market mechanism is only an ideal concept, which never exits in reality. Real market conditions are much more complicated. Non-market forces, such as laws and regulations, are needed to curb or prevent artificial moves that lead to unfair competition or a distorted supply and demand. Administrative measures are also needed to address non-commercial concerns, such as protection of the environment and energy sources.