Statutory laws or laws of the state are made by the legislature or the elected representative of the people. These laws are written in black and white for the people to obey. There is an executive or the police force which makes sure that these laws are being follows by the people. those who violate statutory laws are caught and presented before the court for the award of punishment. This means that there is a judiciary for the proper implementation of the laws. Thus, statutory laws are a binding force on the people and violation of the laws is a crime.
As far as Economic laws are concerned, there is no such thing as legislature, executive or judiciary to make enforce the laws. Economic laws are simply general Economic tendencies of the people. These laws are the statements of Economic realities of life.
The violation of Economic laws only amounts to this is he wastage of economic resources of an individual or a society. for example, if a person does not purchase a larger quantity of a product at a lower price, he only loses some part of his total utility and this is considered to be his personal matter.
An important point in this connection is that statutory laws can be abrogated or amended by the legislature. whereas no institution can do so with economic laws. The reason is that economic laws represent economic realities of life and it is not possible to change the realities.
The difference between economic laws and state laws is as follows:
State Laws are Framed by National Assembly:
The elected bodies of the public formulate state laws and these laws are favored by the majority of people. On the contrary, economic laws are not framed by national assembly or any other institution or anybody rather they are only general statements human behaviour.
No Amendment and Cancellation:
Constitution allows government to cancel or amend the formulated la according to the demand of circumstances. On the contrary, economic laws are gene statements of human behaviour, therefore, only a change in human behaviour can cause change in them. But human behaviour usually remains constant.
Promulgation of State Laws:
The government promulgates laws made by national assembly in the country and the court and administration make the people follow them. Quite contrary to that there is no department to make the people follow economic laws. It is up to people’s will whether they follow them or not.
Concept of Punishment:
If a person disobeys state laws, he is punished according to fixed rules. The person who does not obey economic laws, he is not punished. But the person who goes against economic laws has to bear material loss.
Difference in Boundaries:
The state laws are national and they are promulgated in the same country in which they are made and passed by its national assembly. Quite contrary to that, economic laws are international and they are equally enforced throughout the world.
Command to do or not to do something:
The state laws command to do something and also forbid to do something. For example, cooperate with the government; pay taxes, do not commit theft, do not commit murder etc. Whereas economic laws do not command to do something or forbid to do something.
The government gives privilege in something e.g. government provides equal facilities to everyone. But the richer person is, the more amount of tax he has to pay while the less income a person has, the less amount of tax he pays. The government exempts the poor from taxes. On the contrary, economic laws do not give privilege to anybody. Rather they apply equally on all people.
Munir Ahmed Bhutta. Economics, Azeem Academy Publishers, Lahore.
Abdul Haleem Khawja. Economics, Khawja and Khawja Publishing House, Islamabad.
Manzoor Tahir Ch. Principles of Economics, Azeem Academy Publishers, Lahore.
Muhammad Irshad. Economics, Naveed Publications, Lahore.
K K Dewett & M H Navalur. Modern Economic Theory (Theory and Policy), S. Chand Publishing.