Reflective Blog (21 February 2014)
For this this week, we learned about the impact of Walmart in small towns and we also dicusse if we want Walmart in Weserville. We also watch 20/20's videos about parks owned by private companies and subsidy. We learned the government role in the economy, and learned about private and public property. Some terms that we learned in this section are free riders (parks) and externality (house property value). We learned about the characteristic of public properties too (street lights).
Subsidy in economics are a government payment that helps cover the cost of an economic activity that is considered to be in public interest. It has its benefits and downsides. Like in the 20/20's video, some farmers take advantage of these by receving thousands of dollars even though they grow nothing. Also there are many loop-holes in the bill that let people take advantage of it because the bill is about as long as a football field. Some advantages of these subsidy is that it can encourage companies to produce some medicines that are not really produced for sick paticents.
These information could be important in economics because it can show us what is more benefital for our economy and which is not. It could also show the benefits and downsides of public and private property/service. For most parks, it is more benefital if it to be private owned while the police force is best to be public or government provided.
I like how you touched on Subsidies. While there are some people who take advantage of the government's subsidies, there are also some poor farmers who need the Subsidies to make a living in this weird economy that we live in.
ReplyDeleteI agree that subsidies can have some advantages, but personally think they are a bad idea. People can take advantage while the people that actually need the subsidy can't get it. The rich companies shouldn't be able to get them because they were made for the smaller companies.
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