The Economic Left Flashcards
What is the general view of the economic left on capitalism?
The economic left accepts capitalism but believes it must be regulated to ensure fairness and stability.
What is the difference between procedural and substantive guarantees?
Procedural guarantees ensure fairness under the law, while substantive guarantees ensure specific economic outcomes, such as basic security or correcting inequalities.
Why does the economic left support substantive guarantees in some cases?
To ensure everyone can participate fairly in the economy and to correct historical disadvantages faced by marginalized groups.
What are some examples of substantive guarantees supported by the economic left?
Minimum economic security, affirmative action, progressive taxation, and social welfare programs.
What is one major problem of free markets according to the economic left?
Market volatility—boom-and-bust cycles can cause economic crashes, leading to job losses and financial instability.
How does the economic left propose stabilizing the economy?
Through financial regulations, monetary policy, and social safety nets.
How does free-market capitalism contribute to economic inequality?
It allows wealth to concentrate among a few individuals and corporations, while many people struggle to afford basic necessities.
What policies does the economic left support to reduce economic inequality?
Progressive taxation, minimum wage laws, and social programs.
What are negative externalities, and why are they a concern?
Negative externalities are unintended harmful consequences of economic activity, such as pollution and worker exploitation.
What role does government regulation play in addressing negative externalities?
It enforces environmental protections, labor laws, and consumer safety regulations to prevent harm caused by profit-driven businesses.
