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Naked Economics- Chapter 4
Transcript of Naked Economics- Chapter 4
Chapter 4 Government is good at doing some things, and bad at doing others The Role of the United States Government Think of government like a scalpel, it can be used for good and bad depending on it's intent Government= A Monopoly? Sometimes. Government has to control some business- like the DMV. But others should probably be taken by private sectors- like mail services Pros Government Regulation Cons prevents unqualified entrpreneurs from becoming ivloved
Filters those that become involved in the business market Disrupts Capital
inhibits innovation Taxation Government must tax in order to provide the public with things it needs. T thrash our pockets A abolish investment and work decisions X Xceptions can be made But taxation has it's effects Regulation=
Taxation Government has control? You've got to pay a toll. Some Regulation= Elation!
Total Control= governments a troll Government Regulation
Examples: DDT- a harmful chemical to birds, but not humans. With it being abolished through government regulation, curing malaria has become impossible Striped Bass regulation- Everybody loses situation, where the fishermen get less money and the consumers get less fish to eat. Starting a business- is much harder to do in some countries because of regulation about free markets Government is good, government is great!
But with too much of it,
We could meet a nasty fate!