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Economics and Government - Assignment Example

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The ‘New Deal’ includes a number of government reforms relating to social, economic and government policies during the regime of Franklin Roosevelt. The reforms were aimed at addressing the challenges posed by the Great Depression (Waller 15). Great compression refers to…
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Economics and Government
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"Economics and Government"

Download file to see previous pages Q4. Politics is as important as economics because it involves the allocation of scarce resources. I believe so because politics design systems that are used in the allocation of scarce resources (Roth 100).
Q5. Targeting public transfer programs in the US affected public support for government redistribution by lowering public confidence. There was the observation that resources set aside for redistribution were being misused hence not benefiting the target public.
Q6. Canada has income redistribution through minimum wages. Minimum wages target low earning individuals and reduce the gap between the rich and the poor. Minimum wages does not affect public support for government redistribution in the same way. This is because income redistribution has resulted in the public gaining confidence in the government since there is an improvement in living standards.
Q7. Public insuring of healthcare expenditures in Canada has the effect of increasing support for government redistribution because it reduces the burden of paying for healthcare. The case is different in the US because the public bears the burden of covering healthcare costs. Health insurance represents a form of government redistribution because everyone is able to have access to healthcare free of charge at any public healthcare center (Mankiw 24). This is a big deal because a large portion of the population is unable to have access to healthcare services as a result of high costs.
Q8. A decline in private sector unionization is an indication that the public has confidence in the government hence supporting government redistribution (Deming 11). In the case of Canada, declining private sector unionization has the same effect on public support for government redistribution.
Q9. ‘Great Divergence’ refers to the process through which European countries overcame growth constraints to become the wealthiest nations ...Download file to see next pagesRead More
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