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Economy stability, standard of living, labour laws and disparity of wealth and product

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Introduction

Flowers are beautiful. Flowers can grow in the wild, alone, with only nature affecting their growth, or they can grow in a greenhouse, where all their conditions are controlled. With either option we find different effects on the flowers. In nature the environment can destroy the flower, but the flower in the greenhouse lacks natural nutrients received by the outside world and usually become withered. This can be related to government control within the economy. With too much control, the economy can become smothered and with not enough, it can collapse upon itself, therefore a healthy balance must be found. This brings up the issues of economy stability, standard of living, labour laws and disparity of wealth and product. On the right side of the spectrum we find capitalism. Capitalism is an ideal of free trade with no government involvement in the economy. It was created by Adam smith, and exercises the theories of laissez faire. Although in a capitalist economy the economy can see great times of boom or bust. Monopolies are also prevalent within these societies because there are no laws against such things. ...read more.

Middle

Food lunch programs were cut down along with food stamp programs and Medicare. When Regan did this increased the gap between rich and poor. In 1988 34 million people were poor and another 30 million people were near poor. The poorest 10% earned $3286 where the richest 5% earned $129 762. In 1977 before these cuts were made the poorest 10% made $3673 where the richest 5% earned 95 475. These are substantial changes that caused great disparity all because the government became more right winged. Some government control in an economy leads to better protection of its people. When you see a government that has a minor hold of the economy in its nation you will find a well-balanced society. Canada is a nation as such. Canada is a welfare capitalist state where the government intervenes to keep the economy thriving and the people protected. Citizens pay taxes toward social programs that look after those who are not as fortunate as others. Some of these programs include Medicare, unemployment and workers compensation. When you look after the people your economy will flourish. ...read more.

Conclusion

Compared to a socialist economy such as china, whose GDP is $ 4 300 per capita. This shows that government intervention can be helpful to sustain a strong economy. Government interaction in the economy is a necessary thing for every nation. However to what extent is a question that must be faced. To have too much control you risk the consequences of the abuse of people, poor quality goods and lack of advance in products. But if you have too little you face booms and bust, disparity, and an unstable economy. Finding equilibrium of the two extremes is a problem that nations struggle with constantly and a popular choice of many, including the successful Canada, is welfare capitalism. It's the best choice because it promotes the ideals of both capitalism and socialism. The spirit of capitalism with its free trade and market economy with advancing products and aggressive markets and the control of socialism with state programs like healthcare and unemployment coverage, education taxing and the regulation that government can provide. So when asked the question, to what extent should government be involved in the economy an impeccable answer that comes to mind is welfare capitalism. ...read more.

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