Basics Of Welfare Economics

Basics Of Welfare Economics

Basics of​ Welfare Economics
Human beings are the​ building blocks of​ society .​
The societies agglomerate to​ make states .​
And then the​ nations are formed .​
The economy of​ a​ nation is​ the​ indicator of​ its prosperity .​
What the​ economy affects primarily are the​ people of​ a​ country .​
The technique, which uses the​ concepts of​ macroeconomics to​ achieve social goals, has been christened as​ welfare economics .​
Economics with all the​ data, tables, graph etc .​
can seem to​ be a​ very strict and​ rigid field .​
But the​ economists have now attached the​ human touch to​ the​ economic sphere too .​
Broadly speaking this field essentially involves the​ distribution of​ wealth among all the​ people and​ hence providing them with the​ buying capacity.
The need for​ this approach to​ study economics arises because of​ the​ increasing index of​ poverty .​
The people normally do not pay heed to​ the​ poor and​ the​ needy .​
There are increasing numbers of​ people involved in​ minimum wage jobs .​
They are employed but yet poor .​
The wage jobs do not cover the​ medical insurance or​ education for​ the​ kids .​
Now in​ this situation the​ person prefers to​ fulfill the​ need of​ a​ square meal then to​ go for​ the​ education option.
In a​ democratic set up it​ is​ seen that the​ welfare takes a​ high position in​ the​ agenda of​ the​ governments .​
This is, for​ one, required to​ ensure the​ votes .​
And secondly democracy has an​ influence of​ socialism and​ communism in​ it, thus the​ psyche of​ the​ government is​ for​ the​ benefit of​ the​ masses .​
America is​ known for​ being one such democracy .​
There are enough people to​ work for​ such causes .​
The gamut of​ social welfare is​ very wide and​ anything can be brought under it .​
In one way it​ is​ provision of​ safety to​ the​ country’s citizens .​
Safety from poverty, hunger, disease and​ many other things a​ social worker can think of​ .​
Now a​ very thought-worthy question arose when Ralph Nadar brought forward the​ concept of​ corporate welfare to​ the​ forefront, in​ 1956 .​
This involves giving tax holidays and​ other regulatory leverages to​ the​ corporations .​
The debatable issue is​ that the​ corporate firms in​ a​ capitalist structure cannot be expected to​ work for​ the​ social welfare .​
And at​ every step the​ interests of​ society and​ the​ corporate seem to​ clash .​
The design of​ the​ corporate structure of​ the​ country should be such that it​ can cater to​ the​ needs of​ themselves as​ well as​ those of​ the​ society .​
Corporate governance jurisprudence is​ probably stemmed out of​ such conflicts .​
The core issue of​ this problem is​ probably the​ distribution of​ income .​
The dichotomy on this count arises when one school of​ thought suggests the​ governmental influence on income slabs and​ the​ other theorizes that government should not at​ all be involved but it​ should be the​ sole discretion of​ the​ employer to​ pay the​ employees .​
The actual game lies somewhere in​ the​ middle .​
The governmental regulations do influence the​ wage schemes .​
The need of​ the​ hour is​ however, to​ check the​ accumulation majority of​ the​ wealth among a​ few hands .​
The economic reforms to​ boost the​ grass root level employees too have to​ be brought because it​ is​ they who really are at​ the​ hem of​ the​ economic growth .​
The new approach is​ good from the​ point of​ view of​ the​ low-income people but a​ balance has to​ be struck between their interests and​ the​ interests of​ business giants.

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