Government Intervention In Canada

899 Words2 Pages

In a mixed economy, public and private businesses coexist with each other. It requires the people and the government to work together to assure a fair system. In this kind of economy, needs, private businesses and government intervention are essential to a mixed economy because government regulates the businesses that operate in accordance to consumers’ needs.
First, needs are important in a mixed economy because without the high demand of necessities of the people, private enterprises would not exist. This is what entrepreneurs first look for when they are planning to sell products. They make sure supply meets demand. In Canada, people come from different countries which means people have different preferences in terms of foods and other …show more content…

Canada is facing a shifting global landscape with an increasing level of state capitalism and state-owned enterprises in strategic sectors. In the Canadian context, policy makers will require better benchmarks to clearly allocate limited public resources more effectively. Unlike in the United states, individuals and government in Canada both make decisions, and influence economic decision making. More social services are being provided but at the cost of a higher taxes, given that the state has more funds. According to an article in National Post, the split in Canada is 75% private and 25% public but recently Harper has reduced taxes to create a general conditions favourable to businesses pursuing a laissez faire approach leaving the economy becalmed. The conservative government eliminated tariffs on manufacturing equipments and concluded a series of trade agreements. Canadian government if it sees fit, will intervene directly with the economy by regulating the market by wage and price controls. They legislating how the businesses will be run. There are examples of interventions in Canada which includes the government marketing boards such as the Canada Wheat Board, Hog Marketing Board, and the National Energy Board of the Trudeau era (early 1980s). Many sectors of the economy operate under strict controls in the Good and services Tax, Control of interest rates, excise taxes on tobacco and alcohol, setting production standards, tax incentives, hospitals and pollution

More about Government Intervention In Canada

Open Document