• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economics source based paper. In the source, it is stating that economic prosperity is established by the practices of free market. It supports Adam Smiths theory of the Invisible Hand

Extracts from this document...

Introduction

Assignment 2 Written Response In the source, it is stating that economic prosperity is established by the practices of free market. It supports Adam Smith's theory of the "Invisible Hand", which is the belief that a successful economy is run by people who are driven by their self-interests. It also says "The path to economic growth is not engineered by the government" From this it can be inferred that the source's perspective is that an economy controlled by the government cannot grow to its full potential. This agrees with the idea that the government is devoted to socialistic dogma and therefore, suppresses the market with government pricing and allocation schemes. These thoughts show a capitalistic perspective because it believes that a prosperous economy is built on the pursuit of the individuals' self-interest and not with any government involvement. ...read more.

Middle

Today some of Roosevelt's New Deal programs and practice of Keynesian economics are still used to help strengthen and stabilize the economy. Since the "Great Depression" there have not been depressions of the same degree of severity. So, through Roosevelt's actions towards times of economic crisis and the fact that some of his economic strategies are still being used today, it can be seen that government involvement is beneficial to the growth of the economy. Thus, a mixed economy is one that is able to achieve national objectives by accommodating the needs of those who support private or public enterprises. Affluent and ever-growing economies are built on the values of capitalism and socialism. In private enterprises that are unregulated by the government, workers are exploited in the pursuit to maximize profits. ...read more.

Conclusion

Government involvement in the economy can aid a country to prevent economic disaster and allows its economy to prosper, even though some of the wealth is being distributed among the citizens. In order for a strong and affluent economy both socialist and capitalist values must co-exist and work together as an antagonistic system that allows the economy to remain central of the two beliefs. These points support the position that I have taken; that qualities of both capitalism and socialism establish the foundation for prosperity and growth within an economy. Values of a mixed economy enable more liberal beliefs to be present in the economy by letting people judge for themselves what sector they want to work in. It also creates a sense of collectivism because financial security is created through social programs, unions, and welfare. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Macroeconomics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Macroeconomics essays

  1. Capitalism and Socialism

    The cost for the people in this situation is surely obvious? There is no option to choose another company. Although this is perhaps an extreme version of socialism, the less extreme form still calls for high taxes on the rich, and a thirst for cooperation rather than competition.

  2. Greece financial crisis: The main causes of this crisis are? What are ...

    This seems to be the case today after the new round of budget cutting measure. It is unclear though whether the other EU countries are willing to take up their part of the deal. ? There is one important element missing, though.

  1. Budget 2004-05 and Economic Analysis of Pakistan

    and 2004-2005 (budget) is given in Table below: (Rs. in Million) 2003-2004 2004-2005 Classification Budget Revised Budget * RESOURCES (a + b) 767298 783356 842620 * Internal Resources 608169 638536 686265 Revenue Receipts(Net) 513536 549572 557165 Capital Receipts(Net) 36677 39789 64439 Financing by Provinces for PSDP 29990 34845 33110 Change in Provincial Cash Balance 27967 14331 31551 * External

  2. Governments set economic objectives - Discuss the relative importance of each of these objectives ...

    government spending or a rise in exports due to strong economic growth in other countries. In Figure 6.0, if output increases from Q1 to Q2, the price level also rises from P1 to P2. This rise in output will cause a fall in unemployment.

  1. Indian Economics

    = National Income/ Population. National Income refers to the money value of all the goods and services produced in an economy in one accounting year. The Growth of National Income during the planning period is as follows:-- Plan Duration % Growth of National Income* 1 1951-1956 2.1% 2 1956-1961

  2. Keynesian theory

    The fact that the debtor country has such a weak economy defies the possibility of making such large repayments. In order to repay such debts, the weak economy would first have to be strengthened. Similarly to Angela Merkel, Chancellor of Germany, David Cameron seems to believe in an anti-Keynesianism theory

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work