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

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

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics 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 GCSE Economy & Economics essays

  1. Retailing In India - A Government Policy Perspective

    Tourism Development: One lesson that has been observed from the growth of Dubai and Singapore has been that a strong retailing sector can prove to be major boost to the tourism industry. The consumer electronics retailing in Singapore and Gold retailing in Dubaui are extremely popular in the international shopping

  2. Causes of the Great Depression

    With urbanization came the need to build many more apartment buildings, factories, offices, and stores. From 1919 to 1928 the construction industry grew by around $5 billion dollars, nearly 50%.

  1. The Social Balance - The Mixed Economy.

    With public goods - unlike private goods - there is generally no direct relationship between cost and benefit. The costs of public goods, in the form of extra taxation, are divorced from expenditure both in the decision -making process and often in time.

  2. Is the Welfare State Desirable?

    Having heard that his children will be greater than him, he would want to react and prevent this; the evil within him is slowly being released. Henceforth, this too is a factor resulting in the assassination of Duncan. Even with all of these other factors, it is important to realise

  1. Biography of Adam Smith.

    lot less chemical contamination in our environment, our food and water would be cleaner, there would be fewer cancers and genetic deformities, and we would have more frogs and songbirds. If the full cost of producing and driving cars were passed on to the consumer we would all benefit from

  2. Differences between the standards of living in Slovakia and The Hague

    therefore they cannot answer our Questionnaire fully Number of people living in different areas of The Hague Area Number of People Scheveningen 9 Kijkdiun 6 Centrum 15 Schilderswijk 1 Vogelwijk 1 Other 32 I have found this question quite irrelevant although this question can in fact tell us about the SOL.

  1. boom and bust

    going to increase in value, enough to pay off the credit and to leave people with profit.

  2. The division of labour.

    The first thing that should be considered is the allocative efficiency of an economic system. A economic system with allocative efficiency is a system that can "produce the goods and services that people actually want, in the correct quantities". (Economic System lecture hand out, 2003, P1)

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