exploring economic equality Flashcards
what are three factors in economic equality
-egalitarianism
-equality of opportunity
-equitable distribution of income
what is egalitarianism
-people own production collectively
-guaranteed annual income
-high government intervention, colelctivism
what is equality of opportunity
-minimum wage
-no discrimination in hiring
-little government intervention, individualism
-opportunity is there, but people still have choice to take or not
what is equitable distribution of income
-equal wages for work of equal value
- people with larger incomes pay higher tax rates
-middle on spectrum
left-leaning and economic inequality
- eliminate or reduce economic inequality
idea that wealth should be shared more equitably
-tension and conflict is reduced
right-leaning and economic equality
-small government role
- people have different talents, valued differently
- competition can lead to prosperity as a whole, wealth trickle down
what does any economy try to solve
scarcity (limited resources), and choice
four questions about economic systems
-what will be produced
- how will goods and services be produced
- to whom will they be distributed and at what price
- who will make these decisions
what are the three basic economic systems
command economy, mixed economy, and free-market economy
why was a command economy created
response to classical liberal values of industrial revolution
how does command economy answer questions
what will be produced: government decides needs of society
how will they be produced: public and government ownership, no competition or private property, direction of jobs
distribution: controls according to people’s needs, may use to achieve goals
who makes decisions: leaders and central planners determine needs
how did fidel castro attempt to achieve economic equality
-valued egalitarianism, everyone suffered or succeeded together
- low standard of living, high quality of life
- soviet union collapsed, cuba adjusted by introducing more liberal values (private property, higher wage), less emphasis on egalitarianism
how did raul castro rule
- move economy towards more private ownership
- economic equality through other mesures
what is a free market economy
-theoretical, will never exist
-little to no government intervention e.g. US during great depression
-classical liberal values are seen as posittive
how does a free-market economy answer the questions
what will be produced: supply and demand, through producers
how will goods and service be produced: companies decide how to use scarce resources
distribution: whoever can afford, protected by law
who will make decisions: government allows producers to make decisions
economic equality during the quiet revolution
-equality of opportunity
- focus on students being better prepared for canada’s workforce
- improve teacher training, more accessible francophone post-secondary, modern school ciriculum
economic equality and affirmative action
-united states, civil rights movement
-ensure hiring process was free from discrimination
- resulted in preferred hiring of minorities, people disagreed and agreed
why were mixed economies created
- widespread poverty and unemployment during Great Depression
- mix of free-market and command
how does a mixed economy answer economic equality questions
what will be produced: supply and demand, government can intervene if important good/service is not accessible
how will they be produced: private companies still decide, government can intervene with laws and regulations, be government owned, or subsidized
distribution: those who can buy can buy, government provides basic needs (social safety net)
who makes decisions: private companies to accept government involvement, usually determined by supply and demand, but may intervene for common good
what did john maynard keynes believe
- to avoid recession, government should encourage spending over saving
what is fiscal policy
inflation: government spend less and tax more, less money for people
recession: government spend more, tax less, more money for people
what is monetary policy
increase/decrease interest rates to encourage or discourage spending
what did Franklin D Roosevelt believe
-government invested money in those with lower incomes (rich has responsibility to poor)
- new deal
what did george w bush do
-implemented government bailout, paid through tax money
-given to institutions to keep operating and stimulate economy
