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Free Market System hitches economy

Prof. Abraham Matoch,VC Dr. John Garang University

By Bida Elly David

South Sudan economic analyst in reaction to the Country’s economic status and market yesterday barred out that market to scope equilibrium level, Government should switch it through price regulatory system.

This came after a series of whinges were raised by a number of merchants towards compound hassles of tariffs on foreign and domestic enterprises leading to double pricing of goods making final consumers to encounter opportunity cost.

Speaking to Juba Monitor yesterday, Abraham Matoch, an economic analyst and Vice Chancellor for Dr. John Garang University reiterated that a free-market system where price discrimination occurred through powers of monopoly occasioning to the supremacy of market by individual traders brought problem to the market.

He said that for market to reach an equilibrium level, the government should control the market by regulating prices of goods and services.

He added that once market was left on issues concerning demand and supply due to free-market assumption, prices would definitely skyrocket.

Furthermore, Abraham underscored that there must be a Centralised economic system that enabled government regulate the movement and imposition of prices by traders.

‘’ Free market system where price discrimination occurred through powers of monopoly resulting to the dominance of the market by individual traders brought the problem to the market. For market to reach equilibrium level, the government should control it by regulating prices of goods and services.Once the market is left on issues concerning demand and supply due to free market assumption, prices would definitely skyrocket. There must be a Centralised economic system which enabled government regulate the movement and determination commodity prices by traders’’ Abraham.

In continuation, Abraham criticised traders for having involved into price increment imposing the cost their taxes on the final consumers freely yet complaining about multiple taxes to their enterprises.

He added that taxation was not just an open-ended initiative where tax agencies exercise it with irregularities rather through advance awareness.

‘’What we see now, markets in the Country operate on free system where traders fix prices the way they wanted and claim that there is high taxation which is not true. Taxation is not just an open-ended initiative rather; traders are made aware before the exercise is carried. The marketers sometimes try to increase price to achieve the cost of the taxes on the final consumers’’ Abraham said.

Abraham stated that if South Sudan’s economic system was developmental, the government should interfere in the market to fix commodity prices.

‘’If South Sudan economic system is developmental, the government should intervene in the market to regulate and fix commodity prices accordingly’’ He stated

He urged traders, consumers and Governments of all levels to join hands towards developing Country’s economy leaving self- interest to the devil.

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