Politicians and societies fettered by mental inertia undermine savings, investment and social welfare by imprudent monetary and fiscal management. They refuse to challenge belief in the state as the rightful provider of entitlements to income streams to the unemployed. State intervention to remedy alleged market failure is not a priori socially optimal merely because it is well intentioned. State institutions must be subject to competition from locals and foreigners to be responsive to people's needs. Corruption and government failure is often more destructive than the private monopolies the bureaucrats replaced.
State enterprises can be recipes for the worst examples of corruption and bad government.
Arbitrary vandalism as corruption by politicians, the police, judges and magistrates incite hoarding of wealth and low levels of investment, capital flight, the brain drain of skilled people. Arbitrary corruption, which businessmen cannot predict cannot be factored as a cost of production. Schools must help families and homes to supply the ethical and moral universe which helps to mould a child to grow into respect for private property, the rights of others and the law. The action plan must be based on appropriate incentives which reward lawful and socially profitable behaviour and penalizes corruption, irresponsibility, mediocrity and racism or other discriminatory behaviour against women, ethnic minorities, or religious groups. Laws are for men, they recognize no good men.