While reading chapter 4, an intresting idea had struck me. In the beginning of the chapter, the author writes about how government can be very good, and how government can be very bad. The author goes further into this by stating "if government were so wonderful, then the most government intensive countries in the world - places like North Korea or Cuba- would become economic powerhouses." This was not imedatily surprising to me, I knew that in general, communism doesn't sound horrible on paper, but when implemented, it always fails.
However the author contiunes into this, and as he does this, I recived the following idea from the passage. The government is great at controlling goods that are inelastic, simply because they are inelastic; however if the government begins to control the elastic market, it appears to fail. This is supported by the idea of communism. Communism has never worked on paper and one of the reasons why is government control over elastic goods. Later in the chapter, the author talks about how USSR allocated reasources towards a space program rather than feeding their own people. Had the government not been controlling the market, there is no reason that this wouldn't have happened. Moral of the story, communism is not a good thing.
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