The law of supply and demand has been a fundamental principle in societies throughout history, creating a spontaneous order that addresses the issue of scarcity without the need for legislation. However, this law was abolished in communist countries where the state took control of determining product distribution, leading to disastrous consequences such as the Holodomor famine in Ukraine.
In more recent times, even liberal governments have implemented flawed regulations, such as the absurd pricing framework for water in Greece. The government dictates pricing based on vague criteria, leading to inefficiency, corruption, and the creation of unnecessary bureaucratic entities.
The solution lies in allowing local municipalities to manage their responsibilities effectively, rather than relying on centralized control. By embracing a more practical and decentralized approach, governments can avoid the pitfalls of overregulation and promote genuine efficiency.
Ultimately, the key is to let go of unrealistic top-down mandates and embrace a more flexible and adaptive model of governance. Only then can societies truly thrive and overcome the challenges of resource management.