Steatism Vs Neoliberalism

Superior Essays
What is the purpose of a government? Why does it exist and what were they created to do? Reflecting back to history, we can see the role the government plays to protect and bring prosperity to their citizens. In order to protect their citizens, they strive to achieve three significant concepts: prosperity, security and stability. If each government achieved this goal, ever nation would achieve social, economic and political stability. However in the 21 century, it appears that some nations are thriving while others struggle to develop socially, economically and politically. One major hindrance to developing nation’s growth is their level of corruption; corruption prevents developing countries from retaining and expanding on their wealth. Without …show more content…
When the government can use its tools effectively it has the ability lengthen citizens' lives, increase overall levels of education decrease crimes, and improve relations with other nations. Capitalist nations like the United States practice a laze faire approach when necessary while stepping in when the economy needs assistance. This leaves important decisions to be made by political leaders. These leaders have the ability to partaken in Statism, or neoliberalism. The Statism approach emphasizes strong actions by the government to support and manage the system of production and distribution of goods. Some states believe that the government is overstepping and prefer at the Neoliberalism approach. This approach encourages economic freedom of individuals, households and firms. However, most countries find success in finding a balance between these two approaches. For example, each president in the United States forms different economic policies in hope of maintaining a stable economic system. From increasing taxes and using tax revenues to promote economic growth to redistributing federal funding for things such as education and health care, each president and his cabinet are able to shape the nation in the best way they see fit. While developed nations have found a way to manage the economy while encouraging economic freedom, the same cannot be said about …show more content…
For example, revert to the reaction of the United States government during the financial shock in 2008. The financial shock of 2008, the greatest challenge faced by the United States since the Great depression, was a huge upset that affected millions of families around the world. Caused by the unsustainable housing boom matched with easy availability of mortgages along with the high risks financial institutions were taking, the nation’s financial system fell apart. At its apex in September of 2008, the Bush administration was forced to step in and attempt to bring this economic crisis to an end. In order to stabilize the economy, the Bush Administration passed a law creating the Troubled Asset Relief Program (TARP). This bill that was later adjusted and executed by the Obama Administration, helped homeowners who were not able to pay their mortgages avoid foreclosure, then continued to bail out the American automotive industry. Although many citizens do not believe that this was the best thing for the government to do, it is estimated to have saved over one million jobs (U.S department of treasury). Due to the bailout, the American automotive industry was able to produce thousands of goods, thus allowing the United States to maintain its high level of GDP. If more developing countries are able to use bills

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