Social Essay, Research Paper
The three most important ways the government should intervene with the economy is through social programs, health and safety controls and environment protection. Government funded social programs are essential for an economy and a country as a whole to prosper. Some of the social-insurance programs in place are welfare, pension and disability. Some citizens are unable to work because of old age, a disability or unemployment. There has to be government support to help people get through hard times, or retirement. Health care that is available to everyone, no matter who you are, is also important. In the United States some people can t receive proper treatment due to the extreme costs. This produces huge amounts of money for the capitalists in health care, however it is an un-fair system of health care. The Canadian health care system, even though it doesn t produce the profit, as does the United States health care system, keeps its citizens healthy due to the free health care. Environment protection is also another key factor a government must take into consideration. In many capitalists pursuit for profit corners are cut on the environment. The Canadian government has many good laws for environmental protection such as tree re-planting. Without this our forests would be completely depleted.
The three least important ways the government should intervene with the economy is through the private sector, innovation and makes production more efficient. The private sector has to be government free, except for some regulations such as minimum wage and fair-ness laws (prevent false advertising and un-fair hiring). For an economy to prosper to its maximum potential it must have as little government intervention so it can play itself out. This is usually always a good thing because it gives consumer choice, dollar voting and competition. However, these positives virtues may also turn bad, such as competition. If competition becomes so intense that one company owns all of the means of production for that product then that company can control the market. By controlling the market they are free to charge whatever they want for their product, this is known as a monopoly. With private ownership comes efficiency because producers want to maximize their profit by keeping their overhead costs low. The government must also intervene as little as possible with the innovation industry, except to place safety laws such as testing on animals. If a person is going to create a new product there can t be so many laws that the person is narrowed down to one or two products. The choice has to be unlimited so the innovator can create whatever the consumers are demanding.
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