Tobacco industry has seen significant government intervention since at least the New Deal. Tobacco farmers have typically received subsidies for their crops and the benefits of marijuana prohibition but in more decent decades they have also faced increasingly strict controls on the sale of tobacco products. Prior to the era of restrictive cigarette sales, and buoyed by subsidies, tobacco was one of the more lucrative products to farm in the United States, a situation that has changed of late. The most recent move on the part of the government was the Transitional Tobacco Payment Program,… Continue Reading...
making it more difficult for the unemployed to get work. For instance, an increase in minimum wage and labour taxes due to government intervention may cause firms to reduce hiring as more hiring would increase operating costs. This would harm the labour market as the unemployed would remain in unemployment much longer. This outcome shows that the same labour market institutions and regulations intended to promote fairness and equity can somewhat perpetuate inequity. The unemployed would continue prospering while the unemployed would continue being worse off. The negative impacts of economic inequality on economic efficiency are well known (Boeri and Ours, 2013).… Continue Reading...
able to mirror this movement. While not all providers will be willing to adopt this strategy, with government intervention it would be possible to enforce this move. The government is involved in all spheres of healthcare and this is done by the development and implementation of policies that ensure that healthcare is accessible to all individuals irrespective (Zhang, Qiu, Tsai, Hassan, & Alamri, 2017).
The government is also involved in the financing of healthcare. Financing is in the form of offering subsidies to those who are not able to pay for healthcare services. This will ensure that even those who do not have insurance coverage or Medicaid… Continue Reading...
theorist would predict.
As such, there is a case in this school of thought for government intervention to stimulate aggregate demand. Government intervenes either through fiscal or monetary policy, both serving to create new demand by either lowering the cost of money or in the case of fiscal simply borrowing against future earnings in order to spend today. This stimulus spending is viewed unfavourable by RBC supporters, because they do not see a case for it; but favourably by Keynesians who feel that there is a case, that new money put into the economy today will increase aggregate demand, and that in turn will stabilize… Continue Reading...
political industry in the restaurant industry. Political factors segment discusses the effects of government intervention on the micro and macroeconomic environments. Significant political factors affecting include:
Public health policies are evolving especially in need to increase awareness towards discouraging the consumption of fast foods. Increased concerns about the calorie content of each food mean the restaurant has to shy away from high-calorie foods.
Employment laws relating to employees safety and rights: The adoption of the Affordable Care Act means that the restaurant will have to provide health benefits to full-time employees; failure to this adoption risks the restaurant a $2,000 fine. Others include… Continue Reading...
got to do with the degree (and impact) of government intervention in the economy. In reference to Brexit, the Dec 11 parliamentary decision will impact financial firms and how they conduct business. Although an event of this nature ought to trigger uncertainty in the industry, the article argues that financial firms have been quietly preparing for Brexit. This has been made easy by three key factors that give the said firms an added advantage over other kinds of business, i.e. size, regulation, and fear. However, regulatory pressures are sure to be witnessed. For instance, as it has been pointed… Continue Reading...