The paper "The Problem of Economic Calculation" is a great example of micro and macroeconomic coursework. The performance of any economy and its sectors is dependent on the nature of governance applied by the regime in power. Politics and economics are inseparable at the high levels of government because the two aspects control resources among citizens. Economic interests are always at the heart of an administration in streamlining every sector so that they can work in tandem with their manifesto and constitution. However, in handling economic issues of the state in a microenvironment, a lot of independence has to be given so that the natural forces of supply and demand play their role in driving the economy.
The problem of economic calculation of such a micro-economy in highly regulated sectors like health has been constantly present, affecting the performance of an entire economy. A critical economic synthesis of the role of government in reforming major sectors reveals that it is the bureaucracy and politics are what coordinates resources and not the price, as it should be. There are three major forms of administration adopted by governments, capitalism, socialism and communism.
Each of these political systems has a different and unique way of planning and calculating its economy. However, a debate has ensued questioning whether it is theoretically possible for a country under socialism to plan for its economy. Natural economics dictate that resources are scarce and human beings are always in competition to acquire these resources (Steele, 2013, p. 243). Therefore, any form of government ought to plan and distribute the resources equally and appropriately among its major economic sectors. The planning should involve public participation.
However, this is not often the case because politics gives an advantage to private participants who end up renting and leasing equipment and resources to the public and the government. This translates to the economy being controlled by a few individuals.
Gilens, M., 2014. Affluence and Influence: Economic Inequality and Political Power in America. Princeton : Princeton University Press.
Mises, L. v., 2015. Socialism: An Economic and Sociological Analysis. 6th ed. London : Lulu Publishing .
Steele, G., 2013. Keynes and Hayek: The Money Economy. 9th ed. New York: Routledge Taylor & Francis Group.