Question

1 (a) The Government has played a very important role in improving the economic condition of country
(b) The Governement has been a failure to maintain the economic condition of the coutnry
answer the question as soon as possible

Answer 1

Almost all governments across the globe, would want their economy to grow in a way, that the productivity and total output can be increased, while ensuring, that the lifestyle of people and their access to facilities such as healthcare. education and other critical aspects of life can be increased over a period of time.

While, the goal of all economies remains the same, some have been able to provide well for their people due to the policies which they have enacted, while others have largely suffered and have been unable to do the same. Accordingly, the case study looks at all of the same.

Question 1 A)

When we look at the economy of the United States of America, we see how the government has played a critical role in ensuring that the economic condition improves over a period of time. The economy has been built around a capitalist approach in which the forces of demand and supply have taken over the country and this helps in deciding what goods and services would be produced.

Due to this concept of free market economics coming into play, numerous big companies such as Apple, Google and Microsoft came into existence in the country and provided jobs to millions of people over the years. The volumes of trade increased and the US dollar has widely been recognized due to these efforts as the best currency in which trade takes place across the globe.

The life style and facilities such as healthcare, social security, education etc all help in defining how these government policies of free trade have been a great boon for the economy.

Question 1 B)

Now, on the contrary when we look at the government of North Korea, it has approached a protectionist-based regime in which free trade never takes place, and the government decides what goods and services would be produced, their quantity and distribution etc.

As a result of such protectionism and closed economy which the government has chosen for its citizens, the net result is that the economy is in deplorable conditions and fails to see any growth of health care, education or nutrition facilities.

The governments focus is not on the people and its growth but rather inwards on other areas such as the military. This is the core reason why the lifestyle of people in the country is poor and the government as a whole has ruined the economy as no one wishes to trade with the country respectively.

Please feel free to ask your doubts in the comments section if any.