Government Intervention in the Economy essays

Government Intervention in the Economy essays In today ¡s society, many different nations will choose to answer the fundamental economic question: to what extent should the government intervene in the economy to protect the interests of society, in a variety of ways. One nation may support the system of public enterprise, placing their beliefs and values on the far left of the economic continuum; another nation may be in favour of private enterprise, placing their beliefs and values on the far right of the economic continuum. The third system is the idea of a mixed economy. A mixed economy is in the middle of the economic continuum, supporting private enterprise with some government intervention; it is a balance between public and private enterprise. The more successful way to run a country ¡s economy is to support the idea of private enterprise with some government intervention because it is more adaptable to changes in the economy and it is more stable. The two basic economic systems, public and private enterprise, are being practiced in some countries; however, the more successful and economically stable countries are those that have adapted mixed economy. Canada ¡s economic system is based on Keynes ¡s ideas about the role of government in the economy, known as mixed economy or welfare capitalism. Canada ¡s government encourages competition, profit-driven incentives, and private ownership of property, all of which are features of a private enterprise system. By doing so, producers are motivated to generate high quality goods and services, efficient and productive use of resources, and people are allowed to use their property for individual self-interests. If people are able to use these features to their advantages, then it is likely that they ¡ll be economically successful. This is a positive result because it means that the economy is growing and the total output of the economy is increasing. As for the less fortu nate, they are aided with social programs such a...