I believe that the perspective in the source is highly critical of government involvement in the economy. Some of the beliefs in the source are plausible, but there is also a happy medium where private and government enterprises co-exist without hindering the growth of the economy. The “Great Depression” era is a good example of where the government was able to help move the United States’ economy out of its extreme state by adopting Keynesian economics, which is an advocate of a mixed economy. By using Keynesian economics to help stabilize the economy, Franklin D. Roosevelt was able to help the economy improve rapidly. He also created the New Deal, which allowed a series of economic programs to be implemented and bring relief to the people, recover the economy, and reform the financial system to prevent another depression from occurring. 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. Working conditions people are placed in are inhumane because in capitalistic economies cause private businesses to spend as little as possible on manufacturing costs in order to increase profit margins. It is reasonable for privately owned businesses to pursue maximum profit as long as it does not infringe on the rights of the workers. So, as I am in partial agreement with the perspective of the source; ideas of a mixed economy are a good compromise. The Canadian economy is a good example of a mixed economy. Its economy encourages enterprise free market and allows individuals to follow capitalism, as well as providing public services and welfare for those who need assistance. In Canada, people are encouraged to specialize in areas of industry, which will lead to efficiency and successful trade. Taxation on the private sector and profit from the public sector assist in reducing the gap between the rich and poor. A mixed economy is the most beneficial system because it is the combination of social interests and individual economic freedoms that has allowed countries like Canada to be economically prosperous.
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.
