Explain the concept of Microeconomic Reform?
Microeconomic Reform (simply called Economic Reform) is policies aimed at creating a more streamlined, efficient economy. Now I'm no economist, but I've observed that everything runs better when everyone has a job, taxes are lower, and government spending is kept at a minimum!
There is a term in Economics called "laissez-faire." Of French origin, its literal translation is "let do", but it can mean "let it be", or "leave it alone." http://en.wikipedia.org/wiki/Laissez_faire Basically it means allowing businesses and industries to operate free of government intervention. That means no bail-outs, hand-outs, or government grants or loans. It was the way our grandfathers did business over one hundred years ago!
I realize our government felt it's had to step in to save major corporations who had been around so long they were household words, but left alone and to itself, the economy has a way of righting its own wrongs. It always goes full circle and will come back again just as strong as it was before. Maybe there won't be the same key players, but that's a risk all business owners take when they go into business for themselves. Economy is based on a variety of complex factors that play against each other, and no single factor can exist without the other ones.
To truly achieve economic reform, we need to reduce or eliminate "distortions" in the economy such as high income taxes, government bailouts, exhorbitant government spending, and government regulation. The government needs to encourage small businesses by allowing them to operate side by side with the larger corporations, instead of allowing them to all be bought up in favor of large monopolies. Sales, liquor, gasoline, and cigarette taxes need to be drastically cut or eliminated altogether as they cut into a business's profit and drive the cost of living up. Let the natural laws of Supply and Demand determine the market.
Another great help to the economy would be a better balance of trade in the import/export of our goods. Impose stiffer tarriffs on imported goods in an effort to encourage more consumption of domestic products. I think eliminating tarriffs altogether on goods exported to other countries would be good. Another boost to the economy would be creating better quality-made products that appeal to other countries.
There are many ways to help our economy if we'll just recognize where it's sick or dying, and apply the right "medicine" to save it!