ECON1401 Written Assignment I

4 Found helpful • 7 Pages • Essays / Projects • Year: Pre-2021 • Previously uploaded under: ECON1401 - Economic Analysis

In a capitalist system, income inequality is necessary. It provides incentives for the labour force to acquire better skills, to be more productive and to be more mobile. However, it is generally understood that a high level of disparity results in many problems; including social unrest. Through the contributions of past economists, and the failures and successes of past regimes, what mainstream economists nowadays will agree on is that a successful economy – one that facilitates growth and cares for the welfare of the people – will have both socialist and capitalist programs. One such economist, who has been somewhat instrumental to this discovery, is Robert Owen. Born 1771, a time of economic depression and industrial change, the question remains on whether or not the utopian socialist would stand by his visions – his villages of cooperation – had he lived to see 21st Century Australia. Despite the change in context, what is assumed to be certain is that Owen would remain a vocal advocate for income equality. Under this assumption, areas in which Owen would make reforms to include the education system and taxation system. Only by addressing the issue of income equality at its root – the provision of education opportunities and the central allocation of resources – can the problem be rectified.

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