News 1: UK to boost aid for business in poor countries to £1.8bn
News 2: Half of Afghan children suffer irreversible harm from malnutrition
News 3: Oxfam: 85 richest people as wealthy as poorest half of the world
News 4: Africa's economic growth failing to stimulate development and jobs
Please Write Your Response in 500 Words
News 2: Half of Afghan children suffer irreversible harm from malnutrition
News 3: Oxfam: 85 richest people as wealthy as poorest half of the world
News 4: Africa's economic growth failing to stimulate development and jobs
For Grade 9 Business
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New Case Studies Discuss Question
Big proportion of young children in developing countries are suffering from a problem of malnutrition, violence and inattentive social conditions. High inflation, unemployment and lower level of government social security covers to the work force is adding fuel to the fire of poverty. In such an environment its becoming difficult for the developing nations to maintain higher economic growth rates in respective countries . This has seriously jeopardised the public investment and undermined the social investments.
Discuss whether governments' interference in economics polices is always benefits the socio economic environment of a country.
Submit your article before
February 3rd 2014
Please Write Your Response in 500 Words
Note:
1. Write with references.
2. Present market examples in support of your reasons.
3. Marks allocation for this article is 20
Rubrics for Marks.
A. Theoretical Explanation 5 Marks
B. References. 5 Marks
C. Use of Key words. 5 Marks
D. Examples from various Markets 5 Marks
Government interference is regulation actions taken by a government in order to affect or interfere with decisions made by individuals, groups, or organizations regarding social and economic matters. The economic system where the government interferes is called public market; the government can provide public goods and a better infrastructure in the countries sice they are not aiming to make any profit.
ReplyDeleteGovernment do interference so it can fix or improve but the action can effect disadvantaged .The advantages of government interference on the economic policies, the government can provide a cheaper goods services since the goods services is subsidies by the government, such as the petrol price in Indonesia, the government in Indonesia also provides a free education for the poor people it will make the people smarter and they can be employed easier since they have an education. The government also provides a better infrastructure, which is free or cheaper such as highway road, public transportation, health care, and education. The government can also help the local firms in expanding their business by giving them subsidies it will increase the countries GDPI will also reduce the inequality between the rich and the poor if most of the people in the countries were employed and the government can imposed a different amount of taxes based on the people income for ex in Singapore the money will go to the public revenues that was used by the government to provide public goods and infrastructure to the people in the countries. The government can also control the countries currency and inflation rate easier for ex by making trade barriers that will limit the amount of imported goods or increase the price of imported goods so the local firms in the countries compete
The negative effects of government intervention in the economic sector outweigh the benefits of policies and methods implemented to help the consumer. These policies are found in both the agricultural and business sectors of the economy. On the agricultural side, these policies range from price policies to direct payments to input policies. On the business side, the government can intervene by implementing strict safety and health regulations, tariffs, and subsidies and government loans. While all of these policies seem to have beneficial short-term effects, they never have positive long-term effects. In the end, the government’s spending and intervention in the economy is detrimental. So, should the government stay out of the economy and let it be run by the doctrine of laissez-faire, or is government intervention necessary to the survival of the economy? Many would argue that some intervention is necessary, but in a completely competitive market, there is no need for the government to intervene.
Children are the next generation that will continue the country in the future. The future of the country is depended to the children because if the senior pension the children should continue what the senior have done and develop it. Government spent their money in education so the country has a good future.
-cavel edssel 9bus
Well Done Edssel, you missed out sources (references for the article)
ReplyDeleteGovernment interference on market have a certain advantages,and disadvantages that will affect the market. The economic system where the government interferes is called public market, the government can provide public goods and a better infrastructure in the countries sice they are not aiming to make any profit. A pure public good is a good that has two characteristic non –excludeable and non rivalry
ReplyDeleteThe advantages of government interference on the economic policies,the government can provide a cheaper goods&services since the goods&services is subsidies by the government, such as the petrol price in Indonesia,the government in Indonesia also provides a free education for the poor people it will make the people smarter and they can be employed easier since they have an education.the government also provides a better infrastructure which is free or cheaper such as highway road,public transpotration,health care,and education.The government can also help the local firms in expanding their business by giving them subsidies it will increase the countries gdp
The government can also control he uses of harmful goods which is good for the citizen, they can avoid health problems, accident, and others. The government can do this by imposing more taxes on the harmful goods it will reduce the demand for the products ex: imposing more taxes on alcoholic drinks and cigarettes. It will also increase the standard living of people in the countries by providing a better infrastructures for the people and providing them a job.
It will also reduce the inequality between the rich and the poor if most of the people in the countries were employed and the government can imposed a different amount of taxes based on the people income for ex in Singapore the money will go to the public revenues that was used by the government to provide public goods and infrastructure to the people in the countries.The government can also control the countries currency and inflation rate easier for ex by making trade barriers that will limit the amount of imported goods or increase the price of imported goods so the local firms in the countries compete
The disadvantages of government interfering in the market are the people in the countries will have a few choices of products based on the governments rules and regulations. It would also be less efficient and effective since they are not aiming for profit and in many countries such as Indonesia there is a lot of corruption happens.
It will reduce the incentive to work for some people that work with a low income from the government is providing a lot of goods for the poor people that doesn’t work and they can use all the public goods that were provided by the government and received salaries for their living cost.
The economic growth could be slower compared with the free economics since people are not motivated to work ,there is an equal distribution of income between the rich and the poor.People will start to do an illegal job which get a high aid and started not to report their income to the government since the government imposed too much taxes on their income.
souces from :me and notebook
George djoni/9b
You have done lot of hard work in completing this task. Well done George. Dont forget to mention references.
DeleteCeline B
ReplyDelete9 Business
source: wikipedia, google(?), notebook
Government's interference with the economy might benefit in both good or bad, Economic interventions targeted tax credits, minimum wage law, union shop rules, contracting preferences, giving more subsidies to business, price supports, price caps, production quotas, import quotas, and tariffs. The governments create the law to help the Business life becomes easier and much more helpful to conduct.
It's benefits are that it can help reduce inequality due to the law stating that its giving more subsidies and creating and developing more infrastructures (such as building roads, airports etc ), public and merit goods to the economy and it will help the poverty to be able to afford goods and services including knowledge and food, one example of subsidizing from the government is the petrol (pertamina) from Indonesia, more people will be able to transport cheaply, more advantages are that the economy will lower death rate by the health cares and facilities the governments are providing.
It is necessary to have an economic intervention which can help the economy and market to be better and producing more goods and selling them quickly in a cycle so the economy will be good and growing, and also having a law which can help the economy to be fair and in order but the disadvantages are that the economy might have less choice of products because of the law and reduce the motivation of people to work, etc. Sometimes the government may have made the market, etc to misunderstood the concept or law from the government's perspective and can create government failure in the public interest. Another disadvantage is that maybe the law (example: minimum wage law) might not be so necessary because some firms might not be able to afford or accomplish the rules and might as well close down because of the business failure.
The effects of government economic interventionism are widely disputed.
Regulatory authorities do not consistently close markets, yet as seen in economic liberalization efforts by states and various institutions in Latin America.. Latin America through the 1980s had undergone a debt crisis and hyperinflation (during 1989 and 1990). These international stakeholders restricted the state's economic leverage, and bound it in contract to co-operate. Multiple projects and years of failed attempts, for the Argentine state to comply, the renewal and intervention seemed stalled. Two key intervention factors that instigated economic progress in Argentina, were substantially increasing privatization and the establishment of a currency board. As one can see this exemplifies global institutions including the International Monetary Fund and the World Bank instigate and propagate openness to increase foreign investments and economic development within places including Latin America.
You have done lot of hard work in completing this task. Try to for proof reading yourself, can take the help of english improving websites i have mentioned in the blog.
DeleteWell done.
At certain times, government's interference is major thing to do in order for a country's condition to be saved. This is because the government has the power and authority to create rules and regulations, decide rate of taxes given, and help citizens(healthcare,etc). However, sometimes, government's interference might not be the best solution/action for a country to do.
ReplyDeleteCountries benefit from governments' interference because government can make the condition better. Example: A city is experiencing flood. The government might give help, such as subsidies, food, water, and other things that could help the citizens in living each day healthily. This way, citizens could fet past through the disaster. Another example: A company is not really making profit because it is hard for them to find export-import partners. Here, the government could help by buying the goods from the company and sell it to another country. Last example: When a country is experiencing high inflation, government could interfere by giving subsideis, which would help the citizens in getting through the day. And lower taxes imposed on income. Those examples explain the benefits of having government to interfere in the economy.
However, government's intervention wouldn't be needed when there are already private sectors invovled already in a type of business. Example: Company A produces customized textbooks. it is non-public sector. However, government decides to have a public company producing goods just like that. This way, Company A could find it hard to gain profit, due to a new competition existing.
So, at some point, government intervention would be the perfect solution to all things. It can solve inflation and other ongoing problems inside a country. However, sometimes intervention could just be a loss for other parties involved.
Are you in a hurry to complete this task? I think you should review this article.
DeleteI appreciate all your efforts to complete the task but more need to be done for improving writing skills. Their are many serious shortcomings. Please proof read yourself, take the help of various online website helping in writing good English.
ReplyDeleteWrite the sources at after finishing your article complete web address.
By having the government intervene in a country, the impacts, both negative and positive can result to tremendous changes in a developing economy where problems like sanitation, malnutrition and violence are issues. The positives include providing employment for local people, subsidised food so everyone is able to afford it, free healthcare and education and lower inequality (a smaller gap between the rich and poor), but the negatives include large debts, people’s dependency towards the government and the decrease in productivity.
ReplyDeleteWhen the government intervenes, this can provide employment to the local people as they are able to work in public sectors to finance their family and themselves. Providing subsidised food can also help get rid of the malnutrition found in the country and keep the country’s people happy and healthy. This is also done by providing free healthcare, increasing the life expectancy rate and infant mortality rate, and also with education, problems like violence and unemployment can be tackled as more and more people are educated, which can also lead to less population growth as women and men are more educated and would rather work before having children. Another positive note is that the inequality (the gap between the rich and poor) become less as people have higher purchasing power when subsidies are imposed on food, or free healthcare, education, etc. and jobs are given to these people. An example of great impact in government intervention includes what the US government did after the Great Depression in the 1920s-1940s for the employment rate (as seen in the graph) http://www.economicsinpictures.com/2012/03/percent-us-job-losses-great-recession.html
The problems with government intervening are that it becomes very difficult for the country itself to pay the debt or loans taken by the country to supply all the necessary needs when public expenditure exceeds public revenue, such as France, “France is world-leader when it comes to the proportion of the labour force working in public sector jobs: 25% in 2005 - few of whom were affected by the economic downturn.Governments have continued to tax more and spend even more, to the point where public spending in France reached the level of 55.9% of GDP in 2010.” (http://about-france.com/geo/french-economy.htm). Another problem is, with subsidised food and healthcare, the rich may also benefit from this instead of the poor, still creating high inequality, as stated in an article: "In developed and developing countries alike we are increasingly living in a world where the lowest tax rates, the best health and education and the opportunity to influence are being given not just to the rich but also to their children.” (http://www.theguardian.com/business/2014/jan/20/oxfam-85-richest-people-half-of-the-world). By having a fairly large proportion of the country working under the public sector, if there becomes a time where the country faces high inflation rates and low sales, this can contribute to unemployment, proving that the local people depend on the government for the jobs and public services. Another problem faced by countries today is, when people get pampered from all the government’s help, they start becoming lazy and less productive, creating less competition and eventually slowing down economic growth.
In conclusion, even though many problems will surface when the government intervenes in the economic market, there is a need for a ‘superhero’ to save the country from its depression because of malnutrition, low education, improper sanitation and violence before it becomes too late.