Government intervention in national markets. Angola is one of those countries that is full of such examples. It is also full of contradictions and inefficiencies that dictate that more than often these interventions are only temporary on not fully abided by. Angola's socialist turned capitalist market is full of such regulated areas where government intervened directly much to the disarray of the market. I can remember a time when you couldn't import tires into the country because Mabor the country's tire producing factory had the monopoly of the tire market. If a private company wanted to import tires they had to require an authorization from Mabor, which would result more than often in it being denied, or a request for a commission on the import wasn't uncommon either. This continued for a good while even after Mabor stopped producing until the law was eventually revoked and companies are now able to import tires at will, but this law must be less than 2 to 3 years old (!!) as I had a friend who had a run in with the law because of a container full of tires which didn't have the authorization from Mabor to enter the country. The Major Objectives of Government Intervention Generally speaking governments intervene in the market for two main reasons: "social efficiency and equity". [1] One does not expect to see a government intervene in the economy to favor a firm, or because the government would profit from such an intervention in the way a firm sees profit (except maybe voters positive perception of the intervention). Social efficiency is related to the concept of the government intervening in a situation where the costs pertaining to a firm or a number of firms acting in a specific way is higher that its benefits. One might want to say for correctness purposes that one achieves social efficiency when "the marginal benefits to society - or marginal social benefits (MSB) of producing any given good or service exceed the marginal costs to society or marginal social costs (MSC)." [2] Equity on the other hand is related to the distribution of wealth. A quick definition could be that "Equity is where income is distributed in a way that is considered to be fair or just". [3] This could be easily seen in the struggle of women to receive equal pay as men when performing the same tasks. Legislation is in place in some countries to prevent that this discrimination doesn't happen and income distribution is equal and fair between men and women.
First the story of the Standard Oil Company briefly describes the limits of power. When Rockefeller was trying to take over the market he formed the “South Improvement Plan. When this occurred the public grew very angry with the price of trains, so nobody went on the railroads and Rockefeller eventually got the bill, until prices changed. This is an example of how the consumers, make the company run and when nobody wants to buy your product the individual must adjust. Another example would be when the Standard Oil Company was primarily the only oil company and was forced to split into thirty nine different independent companies. This shows that one business cannot control the entire market and interventions will need to be done accordingly so that a company does not have all the power.
The first standard of equality is ontological equality which is the notion that everyone is created equal at birth. Ontological equality often justifies material inequality. In fact, this type of equality is sometimes used to put forth the notion that poverty is a virtue. A second standard of equality is equality of opportunity meaning that “everyone has an equal chance to achieve wealth, social prestige, and power because the rules of the game, so to speak, are the same for everyone”( Conley, 247). Therefore, any existing inequality is fair as long as everyone plays by the rules. The standard of equality is equality of condition, which is the idea that everyone should have an equal starting point. The last form of equality is equality of outcome which states, everyone should end up with the same outcome regardless of
Wealth inequality and income inequality are often mistaken as the same thing. Income inequality is the difference of yearly salary throughout the population.1 Wealth inequality is the difference of all assets within a population.2 The United States has a high degree of wealth distribution between rich and poor than any other majorly developed nation.3
•Equity is studied to determine whether resources are distributed fairly to all members of a society.
“the exercise of that authority is curbed and shaped by the concern of government officials for its possible adverse effects of business, since adverse effects can cause unemployment and other consequences that government officials are unwilling to accept. In other areas of public policy, the authority of government is again curbed and shaped by concern for possible adverse effects of business” (Lindblom page 178).
Webster’s Dictionary defines equity as “freedom from bias or favoritism.” (“Merriam Webster,” 1996.) More specifically, “gender equity is parity between males and females in the quality, of life, academic, and work outcomes valued by our society.” (Sanders & Tescoine, 2002, p.99-115) To achieve gender equity in all aspects is the goal of these programs. The field attempts to create strategies and programs and then evaluate their success. People who evaluate this field would consider it successful when both males and females are given the same opportunities despite stereotypical gender qualities. They would like to see fewer job fields that are dominated by only one gender. (Sanders & Tescoine, 2002, p.99-115) In the 1960s, during the Second Feminist Movement, gender equity became a major issue that concerned feminists. (Bank, 1997, p. 4)
The government should regulate monopolies in the different monopolies like the prevent excess prices Without government regulation, monopolies could put prices above the competitive equilibrium. This would lead to allocative inefficiency and a decline in consumer welfare. According to Tejvan Pettinger, the professor of Economics at Oxford University UK and a online blogger. “If a firm has a monopoly over the provision of a particular service, it may have little incentive to offer a good quality
...llocation of resources closer to the social optimum, policymakers try to induce firms in an oligopoly to compete rather than cooperate through instrument of antitrust laws. Regulatory bring legal suits to enforce the antitrust laws for example to prevent mergers leading to excessive market power prevent.
What is equality? The first thought that arises in most our minds when we hear this word is the condition of being nondiscriminatory, particularly in cachet, entitlement and opportunities. Based on the Cambridge English Dictionary, equality refers the prerogative of multiple people groups to have a homogeneous social status and deserve identical treatment (Dictionary, 2017). Nonetheless, in the context of this research, equality is the unbiased treatment towards people regardless of their gender.
Enterprises need to be efficient and competitive or they lose money, and the government cannot afford to subsidise such losses. And governments anywhere are not very good at running businesses. Whether the private owner is an individual, or a corporation with thousands of shareholders, peoples' own money is at stake, so they have a strong incentive to work night and day to ensure that their enterprise becomes successful and profitable. Government lacks those incentives, so government-managed enterprises fail to perform across the world.
Income inequality refers to how evenly or unevenly income is distributed in a society (Sutter, 2013). Economic inequality can also be briefly described as the difference between individuals or populations in the distribution of their assets, wealth, or income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality between countries. Its history can also be briefly summed up under: leaders and their subjects, slavery, and the Industrial revolution. Dealing with the first point, leadership can described as a process, where there is organization of a group (subjects) to achieve a common goal. Leaders are generally in a position where the income they earn is much more, or higher than that of their subjects. The leaders are then seen as better off than their subjects because of the large difference of wealth, assets or income between them. The second point goes on to talk about slavery; when slavery was introduced, the people who bought the slaves were assumed to be wealthy. The slaves were also not seen to be people who deserved high income or wages and were therefore paid according to their masters. The second point which is the industrial revolution has its time occurrence argued out...
The appropriate role of government in the economy consists of six major functions of interventions in the markets economy. Governments provide the legal and social framework, maintain competition, provide public goods and services, national defense, income and social welfare, correct for externalities, and stabilize the economy. The government also provides polices that help support the functioning of markets and policies to correct situations when the market fails. As well as, guiding the overall pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. By applying the fiscal policy which adjusts spending and tax rates or monetary policy which manage the money supply and control the use of credit, it can slow down or speed up the economy's rate of growth in the process, affecting the level of prices and employment to increase or decrease.
It is in my opinion that government intervention, though necessary in certain circumstances, should be largely limited to its role in protecting property rights, upholding the rule of law, and maintaining the value of the currency. The market itself is best at deciding how and when to manufacture its goods and it is unnecessary for the government to step in to try and improve the efficiency of the economy. One should look to the entrepreneurial creativity of millions who are willing to risk their own resources and reputations in order to progress our country. Before you place your trust in such entrepreneurs however, you should gain an understanding of the differences between political and market entrepreneurship as well as how government subsidies can undermine our economy in such a deceitful manner.
Equality: Equality is a word that is generally used to describe that all men are born equal and therefore should be treated the same way. However, scientifically, it is not true. Not all men are born with the same cognitive or physical capability. Equality in my view is when people of the society, regardless of their caste or creed, race or religion, rich or poor enjoy:
Investopedia defines Social Responsibility as an ethical framework and suggests that an entity has an obligation to act for the benefit of society at large. (www.investopedia.com/terms/s/socialresponsibility.asp)