Ways Governments Intervene in Economy, - Coggle Diagram
Ways Governments Intervene in Economy
Productivity measures what can be produced from a given amount of resources. Business are always interested in improving their productivity by producing the same or greater quantity of goods and services using fewer resources.
Managers are the leaders of a business, responsible for coordinating employees and using capital resources to optimise profit. There is a clear link between
Labour productivity measures the amount of goods and services that a worker produces in a given amount of time. A business might take action to increase the productivity of its workforce in the following areas.
Definition: a government's statements of what it intends to do or not do (including laws, regulations, decisions or orders) in regards to the selection, admission, settlement and deportation of foreign citizens residing in the country”
Australia's immigration policies have evolved over those 65 years from focussing on attracting migrants, primarily from the United Kingdom,
for the purpose of increasing Australia's population to a focus on attracting workers and temporary (skilled) migrants inorder to meet the skilled labour needs of the economy.
Government manages budget of Australia and sets budgetary policy (fiscal policy)
Affects living standards as some areas have more government spending than others (e.g welfare payments and healthcare)
Government can hand down three different budgets depending on economic circumstance
Balanced budget: government revenue is exactly equal to expenditure
Deficit budget: government revenue is less than government expenditure (Government spent more than revenue received)
Surplus budget: government revenue is greater than government expenditure (Government has more revenue than money spent)
Each year, Government delivers plan of government spending, usually around May.
The introduction of the new temporary sponsored parent visa for bringing in overseas parents of Australian citizens and permanent residents will be available on 17 April 2019.
The visas will be valid for 3 or 5 years at a cost of $5,000 and $10,000 respectively.
Reducing Negative Externalities
Training and workforce development policy
Definition of Workforce Development
Workforce development is considered an interconnected set of solutions to meet employment needs. Workforce development can include changes to culture, changes to attitudes, and changes to people's potential that help to positively influence a business' future success.
Training and workforce development policies aim to provide the necessary labour resources to produce more goods and services and to increase economic growth and the standard of living.
The Department of Training and Workforce Development manages the State Government's investment in vocational education and training. Workforce development focuses on improving the workforce so that there is more production. Solutions may focus on low skilled workers to improve their knowledge and skills by helping them access training programs. They also help to address shortages of workers in particular industries.
The government promotes policies that will increase economic growth in Australia.
If there is an increase in goods and services it means that there is more employment and more income lading to a better standard of living.
Income and Wealth Distribution
Different policies of government mean that are ‘winners’ and ‘losers’.
Because wealth allocated to some issues and not others.
Can include cutting expenditure to welfare payments for unemployment
Causes gap between rich and poor to increase
The highest 20% of households have over 60% of the total Australian household’s wealth.
Lowest 20% own less than 1% of total wealth.
• Removal of government regulations in an area of the economy
• Reduces costs and increases competition
• Deregulation of telecommunication industry
• Boosted growth of internet and mobile phones in Australia
Labour market reform
• Removal of determined wages
• Employer and employee determine work conditions
• Called Enterprise agreement
• Can make production more efficient,
• Employee more flexible and more benefits
• Opening markets for free trade
• Trade without restrictions
• Removes Tariffs, subsidies and import quotas
• Tariffs, a tax by government on imported goods
• Subsidies, payment to producers to support business
• Import quotas, a limited to the amount of goods imported
• Designed to promote efficiency
• Reduces costs meaning businesses can compete on global scale