To what extent should the government intervene in the economy to protect the public interest?

An economic system is an organized approach to producing and distributing goods and services. It is scarcity (in economic theory, the limited availability of resources and goods; the excess of wants over needs), which creates a need for economic systems. There are different types of economic systems in which all are believed to be the correct solution when it comes to scarcity. Capitalism is based on an approach to economics that promotes private enterprise. In a private enterprise system, you will see profit, initiative, competition, incentive and self-advancement. Socialism is an economic philosophy that stresses public ownership of the means of production rather than private ownership. Underlying this philosophy is the belief that this system is morally better because it reduces the gap between the rich and the poor. In socialism, there is government involvement in the economy, either through control or ownership of productive resources. Socialists believe that the government should provide basic necessities for all, as well it believes in competing political parties chosen to govern by majority rule, with minority rights guaranteed. The economic systems of nations in today's world are not simply capitalist or socialist. Economic systems now have elements of both capitalism and socialism. They are mixed economies. Canada is a mixed economy because it has a unique combination of capitalist and socialist policies. Government intervention basically means the amount of involvement the government will have in the economy. For Capitalism to work there must be little or no government involvement in the economy. For socialism to work there must be complete government intervention in the economy, where as in Canada there is some government involvement in the economy, but people have the freedom and individualism to do as they wish like in Capitalism. Some people believe that governments have a responsibility to protect the public good by regulating the activities of the private sector in the economy. Others support deregulation, believing that government intervention in the economy is really interference. The question is to what extent should the government intervene in the economy to protect the public interest? I believe that Canada should remain a mixed economy where there is some government involvement to accomplish certain economic goals as well as freedom and individualism. Firstly, there should definitely be government intervention in Canada to ensure that monopolies do not exist. Secondly, a problem with capitalism or private enterprise economies is that there is recurring depressions and unemployment that emerge as a pattern of economic changes. Lastly, as a mixed economy people still have incentives as well as individualism to make a profit. In this essay, the following three features to a mixed economy will be examined and explained in depth for a better understanding as why Canada should remain a mixed economy.

Firstly, there should definitely be government intervention in Canada to ensure that monopolies do not exist. A monopoly basically means Ownership or control of certain industries by a limited number of business participants or government. Monopolies tend to exist amongst a Capitalist form of government. Capitalism is an economic system which is based upon certain beliefs about human nature. Capitalism reflects the view that people desire to operate relatively free of economic restrictions and control. Basically, a capitalist wants to be as free as possible from government interference and it is this which allows for monopolies to exist. Although there is freedom in this type of economy only a small number of people become very wealthy and eliminate possible competitions. These people who become very wealthy have the ability to control large sections of the economy because of shrewd business dealings. A monopoly exists when no competition is present. A player wins at the game monopoly when that player owns everything and there is no longer competition. When a producer has a monopoly, the consumer is no longer sovereign, prices are not set by supply and demand, and therefore the system cannot function effectively. As a mixed economy there is competition but more so there is government regulation to ensure that these types of monopolies do not exist. In other words the economy is not completely in the hands of the people, small business are allowed to exist and people are allowed to make a profit but here there is more quality into the work as in a free market economy, people look for the cheapest method of creating a popular product.

Secondly, a problem with capitalism or private enterprise economies is that there is recurring depressions and unemployment that emerge as a pattern of economic changes. In a Capitalist economy there exists a major gap between the rich and the poor. This is due to the ideas of individualism, which means that some people will do well and others will not. Small numbers of businesses become very wealthy allowing for monopolies to exist where these small businesses have control over economic decision making. One of the major problems capitalist nations must deal with on an ongoing basis is an economic event known as the business cycle. This means that the economy will go through periods of boom (good times) and bust (bad times). Private- enterprise economies go through unstable business cycles because of the lack of government intervention. Although Capitalism sees its peak during economic busts it is not soon before it sees its lows where there is high unemployment, low-profits and very little production. It is this reason that Canada should remain a mixed economy where there is an amount of government involvement in economic decision making. A safe amount of government intervention would result in higher incomes, production and employment, which would then lead to expansion.

Lastly, as a mixed economy people still have incentives as well as individualism to make a profit. In Canada there is some government involvement in the economy, but people have the freedom and individualism to do as they wish like in Capitalism. As a mixed economy Canada places a high value on choice and freedom. Economic freedom reinforces the political and social freedoms of a society. In Canada government regulation and or intervention does not stop a competition from occurring, in Canada there is individualism of Competition. Here consumers are free to choose the products they desire. They can choose what to buy, where to buy it, and for how much. If they feel a product is too expensive, they choose not to buy it. Instead, they may choose a similar product with a better price tag. Producers also have the freedom to enter the market and produce a product they think will sell (and that meets government standards). These two freedoms (for producers and consumers) will lead to competition, a necessity in the market economy. When competition is present, consumers can compare products and prices for competing producers and reward the best producer by buying his or her product. Producers whose product does not sell must either improve or else go out of business.

In conclusion, I believe that Canada should remain a mixed economy where there is some government involvement to accomplish certain economic goals as well as freedom and individualism. Firstly, there should definitely be government intervention in Canada to ensure that monopolies do not exist. A monopoly exists when no competition is present. A player wins at the game monopoly when that player owns everything and there is no longer competition. When a producer has a monopoly, the consumer is no longer sovereign, prices are not set by supply and demand, and therefore the system cannot function effectively. Secondly, a problem with capitalism or private enterprise economies is that there is recurring depressions and unemployment that emerge as a pattern of economic changes. In a Capitalist economy there exists a major gap between the rich and the poor. This is due to the ideas of individualism, which means that some people will do well and others will not. Private- enterprise economies go through unstable business cycles because of the lack of government intervention. Although Capitalism sees its peak during economic busts it is not soon before it sees its lows where there is high unemployment, low-profits and very little production. It is this reason that Canada should remain a mixed economy where there is an amount of government involvement in economic decision making. Lastly, as a mixed economy people still have incentives as well as individualism to make a profit. In Canada there is some government involvement in the economy, but people have the freedom and individualism to do as they wish like in Capitalism. As a mixed economy Canada places a high value on choice and freedom.