Tuesday, July 5, 2016

Undermining the Rule of Law

Free market economics cannot really work if there is a lack of faith that laws will be executed fairly and without regard to political or prejudicial considerations.  Uncertainty as to whether laws are laws or just conversation, that can be flouted by the wealthy and powerful, will keep important economic investments from occurring.

There must be a certainty that the right of contract as well as other laws will be recognized as inviolable.  Admittedly, justice can slip up from time to time,  People are human.  But, when laws are blatantly disregarded and lawbreakers are given a pass, simply because of their wealth and political power, not only does the political system begin to fray, but the economic system will begin to lose confidence in basic contract law.

Arbitrary actions by government and picking and choosing winners and losers in the judicial system based solely upon political affiliation will damage an already frail economy.  It might "feel good" in the short run to run roughshod over the administration of law in an attempt to protect friends and political allies, but, in the long run, such arbitrary government rule will eat away at the economic foundations of the economy.

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