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Propaganda is the sole reason for their existence.
The overall economic rate of inflation is primarily a result of changes in the money supply, managed by central banks. However, when government gets involved in regulating, subsidizing, price fixing, and other interference, prices inevitably increase at a much faster rate than the rest of the economy. If politicians just stay the f*ck out of industries, the prices of products and services plummet due to competition and innovation. Standard supply & demand curves can explain it all, but economically illiterate politicians are only interested in shallow vote-getting “fixes”.
The main goal in the field of economics is maximizing production, given the constraints of limited labor, land, and capital. Government is the worst allocator of resources simply because it doesn’t have the same incentives for success, nor does it face punishment for failure. Thousands of years of recorded human history have shown this over and over, but the lesson never seems to be learned.
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