1. Why is the Canadian system referred to as "welfare capitalism"?
Canada blends a capitalist market economy with a strong welfare state. While private businesses drive the economy, the government provides social programs like universal healthcare, education, and pensions to reduce inequality and ensure a basic standard of living.
2. How might a neoliberal government's response to an economic recession differ from that of a socialist government?
- Neoliberal Government: Focuses on market-based solutions, reducing taxes, cutting public spending, and minimizing government intervention to stimulate private sector growth.
- Socialist Government: Increases public spending, expands social programs, raises taxes on the wealthy, and uses government intervention to create jobs and reduce inequality.
3. What are the potential benefits and drawbacks of communism in solving economic challenges?
- Benefits: Promotes equality, guarantees basic needs, and eliminates unemployment through government-planned jobs.
- Drawbacks: Can lead to inefficiency, lack of motivation due to no personal rewards, and limited innovation without competition.