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2: Writing Exercise 1 - Assignment Example

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This is characterized by the division of labor. That is capitalist by the competing types of rationalization that result to diverse types of integration. The modern work societies shape as network societies,…
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Assignment 2: Writing Exercise 1
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Download file to see previous pages ng a working society is to raise the society’s and individuals’ well being and having economic structures that are in a position of doing more desirable than those that do not.
This kind of market economy entails a self-controlling system of the markets that is a market that is controlled by the market prices only. Such a market organizes the whole economic life without help from outside or even interference that would deserve to be termed as self-controlling. If everyone is left to their own economic devices, on his own without the control of the state, then that would lead to a more equal society of ever raising prosperity. Adam smith advocated for minimal interference by the government in a market economy. This however, is not against the provision of the state of the basic public goods, he argues that if everybody is in control of his own economic devices, instead of being regulated by the state, and then it would lead to a harmonious and equal society of prosperity that is ever increasing. The world economic crisis of 1929 showed that liberalism does not work as it results to high unemployment.
This is an economic theory of total spending in an economy plus its impact on the production and inflation. This theory was developed by John Maynard Keynes as he was trying to understand the great depression. He advocated for an increase in government spending and lowers taxes to increase demand and get the world economy out of depression. The Keynesian economics was applied to refer to the government influencing aggregate demand by activist stabilization and economic intervention policies.
According to Keynes, if the invisible hand of the market fails, then the visible hand of the state is required. The state intervenes into the economic cycle by deficit spending and ant-cyclical spending. This result to high employment and less inequality, risk in public debts and inflation.
This entails deregulation, privatization and flexibilisation. In the name of economic ...Download file to see next pagesRead More
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