Recently I read in the newspaper that Karnataka government is planning to regulate multiplex movie ticket prices. This sounds like sweet music to ears right? Why would someone not be happy to pay a lower price for anything?
I feel this move smacks of licence raj. First of all, government has absolutely no role in regulating non essential private businesses over what/how much they charge. This throttles innovation and hinders entrepreneurship. Government should foster free market rather than be the antithesis of it. If the general public decide that movie ticket prices are exorbitant, either they will stop watching movies at multiplexes or some enterprising chap will come up with a plan to provide them this service at a sweet price point. By introducing artificial constraints, government is strangling the entrepreneurial spirit and hurling us back to the hey days of socialism where having a phone connection was considered a privilege. More the constraints in a market, lesser the participants, fewer innovations, lesser economic activity, fewer jobs and capital movement.
Secondly, does it look like our government has less tasks on it’s plate that it wants to add one more, trivial, non impacting regulation to it’s todo list? What do you think is more important, providing basic education, health and security to it’s people or investing time and energy in regulating ticket prices in multiplexes? Would not the government be more wise in exerting it’s authority on bettering our public health system or libraries?
As soon as government starts meddling in the affairs of a private business, it is not those who excel at innovation that triumph but people who kick ass in playing politics and boot licking. With all it’s flaws, a free market economy trumps a regulated one any day.