StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Australian Government Intervenes in the Economy - Essay Example

Cite this document
Summary
The dominant belief in economics is that "markets are usually the best way to organize economic activity" (Mankiw, 2004). According to this principle, the market system works best in running the economy. However, even though it is deemed the best, it not is without flaws…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Australian Government Intervenes in the Economy
Read Text Preview

Extract of sample "Australian Government Intervenes in the Economy"

Download file to see previous pages

Aside from market failures, the government also intervenes to achieve equality through the reallocation of resources and redistribution of income (Stiglitz, 2002). This last impetus for the government to interfere in the market economy is the focus of this paper. We will take a particular look at the Australian government and its various ways of intervening in the market to improve its outcomes: with a specific focus on reallocation of resources and redistribution of income. A study of the Australian National University's Centre for Economic Policy Research highlighted the income inequality in Australia.

"The study revealed that "taken overall, the 60 years from 1921 were apparently a period of major decline" in the share of income going to the wealthiest taxpayers" (Michaels, 2006). By 1980, the share of the top 1% fell from 10% of the total income to 5%, the 0.5% fell from around 9% to 2.95% and the top 0.1% was cut down from 4% to approximately 1% (Michaels, 2006). . er the same period and the share of the top 0.1 percent, which had fallen to approximately 1 percent of the total in the 1980s, more than doubled to over 2 percent by the end of the 1990s" (Michaels, 2006).

The introduction of the imputation system "in which part of corporation tax paid is treated as a pre-payment of personal income tax" has exacerbated the inequality (Michaels, 2006). Early Redistribution Activities Australia government depended on three redistribution methods: "the progressivity of the taxation system; the distribution of government cash payments; and the absolute level of government in-kind and cash payments" (Robinson, 2007). "From 1910 to 1940 per capita levels current of Australian social expenditure in 1911 prices rose 208% substantially more than Butlin's estimate for GDP growth in 1911-39 of 48%.

The introduction of aged pensions, the maternity bonus and repatriation services saw the Commonwealth take a leading position in overall social expenditure, in particular cash payments to individuals, but the states remained dominant in the delivery of in-kind services, particularly education and health and NSW from 1927 introduced widows' pensions and child endowment" (Robinson, 2007) Australian government has given much in terms of pension and reparation. Excluding the NSW widow pensions, pension and reparation became the government's responsibility in which the distribution is "allocated per capita among the census category of Pensioners as identified in the census" (Robinson, 2007).

There were also in-kind government services which is composed mainly of health and education and administered by the state in proportion to their population (Robinson, 2007). The government also resported to cash payments, although it covered only a small

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Australian Government Intervenes in the Economy Essay”, n.d.)
Australian Government Intervenes in the Economy Essay. Retrieved from https://studentshare.org/miscellaneous/1529965-australian-government-intervenes-in-the-economy
(Australian Government Intervenes in the Economy Essay)
Australian Government Intervenes in the Economy Essay. https://studentshare.org/miscellaneous/1529965-australian-government-intervenes-in-the-economy.
“Australian Government Intervenes in the Economy Essay”, n.d. https://studentshare.org/miscellaneous/1529965-australian-government-intervenes-in-the-economy.
  • Cited: 0 times

CHECK THESE SAMPLES OF Australian Government Intervenes in the Economy

Economics of Money and Banking Short Answer Questions

This is basically how the reserve bank intervenes in the foreign exchange.... Explain how monetary policy is implemented in Australia and how changes in monetary policy are transmitted through the economy to affect the overall level of economic activity Monetary policy basically refers to the manipulation of short-term trade conditions; mostly interest rates to help in the realization of domestic policy objectives.... For this reason, the Reserve Bank of Australian intervenes by floating the Floating is done in two major ways....
4 Pages (1000 words) Essay

The Australian Automotive Manufacturing Industry

Others place the blame to the car manufacturer themselves that used the australian government like their own piggybank to bail them out financially.... With the local economy facing harsh times it seems that with current size of the market and increased competition from imports has simply gotten too small to be profitable.... Although, there have been many interrelated reasons that have caused the slow demise of the industry many individuals put the most of the blame on the federal government....
4 Pages (1000 words) Assignment

The Importance of Children's Rights

This essay "The Importance of Children's Rights" gives detailed information about the UN Convention on the Rights of the Child.... nbsp;The writer of the essay states that the need to protect children from adult hardship is not new and explains this point of view by analyzing the main UN principles....
14 Pages (3500 words) Essay

Competing in the Global Marketplace

He believed that the government should intervene through its tools of macroeconomic policies to influence the demand side of the economy in order to deal with recessions, inflation, and unemployment.... In the paper “Competing in the Global Marketplace” the author looks at the classical view, which assumed that the supply of savings determined the amount of investment in a business or industrial assets....
12 Pages (3000 words) Assignment

Cultural and Economic Interactions between Australia and Japan

These economies are more open, diverse, extremely competitive, and are using latest technologies to their advantage to give a boost not only to their economy but also to their linkage with the rest of the world and attain the status of economic power.... The late nineteenth century saw the relationship between Australia and Japan to grow and during the australian Federation in 1901, around 3000 Japanese were residing in Australia.... This act came to be known as “White Australia Policy”, posing virtually impossible for non-Europeans to be privileged to settle in australian soil resulting in the number of Japanese residents to decrease and by 1945, all the remaining Japanese returned back to Japan....
9 Pages (2250 words) Essay

PNG's Response to Bougainville Referendum on Independence

However, the complications brought about by a lucrative yet environmentally-destructive mine, a civil war that leads to the death of many people, and a countrywide government unwilling to set practices for other regions has resulted in an increase in the complexity and divisive issue of the political status of Bougainville.... The Bougainvilleans were promised a referendum that would contain the preference of independence, ensuring a set period of an independent government in the Bougainville Peace Agreement, which was signed in 2001....
12 Pages (3000 words) Essay

The Implications for Contemporary Australian Cultural Policy

The paper "The Implications for Contemporary Australian Cultural Policy" will discuss the consequences of government intervention into the cultural activities and tastes of citizens.... This government involvement in a nation's culture has both its downsides and upsides.... As such, the role of the government in shaping up the culture of a nation cannot be gainsaid and the following discussion shall thus examine how governments intervene in culture; the consequences of such intervention, and the implications of such intervention on contemporary Australian Cultural policy from a historical context....
8 Pages (2000 words) Term Paper

The Social Need for Housing

However, the australian government is not keen on providing social housing due to political and ideological reasons.... The failure by the australian government to participate directly in the provision of affordable housing is part of the reasons why Australia faces a severe shortage of affordable housing.... The shortage of decent housing for all Australian is owed to a number of policy moves made by the australian government.... First, the australian government makes a little direct contribution to increasing the housing stock....
10 Pages (2500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us