top-rated free essay

politic

By kathlovesyouu Feb 27, 2014 282 Words
What sections of the economy (if any) should be government owned? How might a company be chosen as the focus for an industry policy? How can companies be prevented from misusing tax havens?

Answer

The government can intervene in the economy in several ways. For instance, producing goods and services, such as infrastructure, education, and national defense. In addition, transferring income, both vertically across income levels and horizontally among groups with similar incomes and different characteristics. Lastly, taxing to pay for outlays, which can lower economic efficiency by distorting behavior. The nature of industrial policies is that they complement—opponents would say “distort”—market forces: they reinforce or counteract the allocative effects that the existing markets would otherwise produce. Tax havens make use of the limited reach of national regulations and of deficiencies in international regulations. Tax havens pose a challenge to the developing countries' ability to efficiently govern their own country. First, tax havens limit sovereignty, as they limit the scope for national governments in controlling, taxing and regulating private companies. Second, tax havens may foster institutional decay as they make it easier to get away with large-scale corruption and theft of resource rents.

Summary

The size and role of the government is one of the most fundamental and enduring debates in American politics. Economics can be used to analyze the relative merits of government intervention in the economy in specific areas, but it cannot answer the question of whether there is “too much” or “too little” government activity overall. That is not to say that one cannot find many examples of government programs that economists would consider to be a highly inefficient, if not counterproductive, way to achieve policy goals.

Cite This Document

Related Documents

  • The Global Challenges of Comparative Politics

    ...Introduction The Global Challenges of Comparative Politics Introduction to Comparative Politics-Studies how different countries both shape and are shaped by the world. 1989,2001, and 2008 define the current era of world politics-describes a particular important moment; critical juncture. A frequently cited date is 1989, when the Berlin wa...

    Read More
  • Power, Dissent, Equality: Understanding Contemporary Politics

    ...In what ways can comparative study help to improve our understanding of politics? Support your argument with reference to at least two examples. As the topic suggests whether everyone and everything is political in this case there is no right or wrong way to argue this point. But I think the best way to approach this essay is to understand th...

    Read More
  • Discuss the Strengths and Weaknesses of Any 5 of the Following Approaches to the Study of Politics.

    ...Question 2. Discuss the strengths and weaknesses of any 5 of the following approaches to the study of politics. An approach is to deal with a situation or problem in a particular way. It is also the means by which something is reached. It is the angel form which one views political problems. It is a criteria for searching for the q...

    Read More
  • Philippine Politics

    ...Mascardo, maria jida submitted to: mrs. leonora villarin PHILIPPINES POLITICS NOW AND THEN PHILIPPINE POLITICS TABLE OF CONTENTS ACKNOWLEDGEMENT INTRODUCTION BODY SUMMARY DEFINITION OF TERMS STATE THE PROBLEM CONCLUSION BIBLIOGRAPHY ...

    Read More
  • Politics

    ...Essay #1 Outline Essay Question: Define “politics” in your own words relate your definition to that of the classical scholars discussed in class. Which of the three do you prefer and why. Introduction: Many people disagree about what the word politics can mean and how it is used in our country. It is often brought up in a negative manor t...

    Read More
  • Effects of internet in Politics

    ...positively on how we get involved into politics and government. Even though great portion of American population lost their beliefs in political-efficacy, but with Internet it is definitely increasing. Another positive effect of Internet is that it decreases the cost of participation. For example it saves time, because people wouldn’t have to ...

    Read More
  • Comparative Politics

    ...nature and future of comparative politics PHILIPPE C. SCHMITTER 1 1,2 * Emeritus Professor, European University Institute, Florence, Italy 2 Recurring Visiting Professor, Central European University, Budapest, Hungary The future of comparative politics is in doubt. This sub-discipline of political science currently faces a ‘cross...

    Read More
  • Criminalisation of Politics

    ...Criminalisation of politics has become an issue of grave concern among the Indian intelligentsia. And though the top leaders of all political parties agree that those with criminal record should be debarred from contesting elections, the number of such people is only increasing. In 2004, about one in five MPs had a criminal record, includi...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.