The Role of Government in the Economy - Coggle Diagram
The Role of Government in the Economy
governments monitor the manufacture of certain good and services to guarantee they are safe for consumers to use
they may require a corporation to include particular label to their goods in order to notify customers
laws are enacted to ensure that producers agree to and satisfy the safety requirements
ensuring the Safety of the Consumer
The government oversees all products that are put into the market to make sure the are consumer safe and ready. If food is put into the market that can cause illness to people the government will have that product recalled as soon as possible to ensure the safety of all.
The government also prohibits companies from not putting the materials and risk of use on their products. If a company does not put these things on their products they can/will get fined or sued if someone is harmed.
Health Canada must go through and check every product before they release it to the public to ensure that it is up to date with all the new guidelines.
promote a stable market
the government is able to do this by preventing monopolies and promoting competition
this helps to keep consumer prices constant.
the government has the ability to control the economy in order to make more stable and predictable
there are laws in Canada and each province that safeguards the rights of both workers and employers
governments impose workplace health and safety regulations
they perform inspections of workplaces to ensure everything is going well
they look into workplace accidents and injuries
prevent price fixing
the government may ensure that buissness cannot fix thier pricing such that they deviate from regular market dinamics
this protects the customer by keeping the costs and products and services reasonable and affordable
price fixing is prohibited under the Competition Act, which promotes competition and ensures the best pricing for customers
crown corporations are typically formed to meet a need that would not be profitable for a private enterprise
crown companies are federal or provincial entities that are constituted in the same way as private or independent films
Drawbacks of government involvement in the economy.
Government officials are voted by and represent the citizens in their jurisdictions so they have a moral obligation to release any important information the the citizens. If they are caught keeping information in order for a personal wealth gain they will be obligated to step down from their position of power as this is an abuse of power.
Recently government officials have been uncovered for selling their stock portfolios to corporations after a degriefing on the impact of covid - 19 on the stock market.
Governments play a vital role in our tax money spending, and oftentimes that money could get to their head and it can lead to them making irrational and wasteful decisions. If this happens it leads to less competition will be seen between crown corporations.