Government and business

To what extent should a government interfere in the economic system? There are two extremes in the spectrum. On the one hand a government can interfere minimally, allowing the forces of demand and supply and the price mechanism to determine what goods and services are to be produced. This is called a laissez-faire (or leave it alone) policy. The argument runs that people will vote with their money for the sorts of things they want. If they want to read a particular newspaper, they will buy it, and the newspaper will stay in business. If they do not like the newspaper, they will not buy it, and the newspaper will go out of business. The same applies to television sets and motor cars, holidays in Spain and Chinese take-away food

At the other end of the spectrum is the centrally planned economy in which government makes all the major decisions such as what is going to be produced, who is going to produce it, where it is going to be produced, and who is going to benefit from it when it is produced..

Most governments operate somewhere between these two extremes. In capitalist countries governments let the business world get on with the job for the needs of the people. If they make profits, we will tax these profits and use proceeds to support the Welfare State (which offers free education, subsidized health and pensions) and defend us against external aggression. There is, however, general agreement that some economic activities should be controlled by the state, which explains our nationalized industries.

Notes

to what extent – до какой степени, насколько proceeds - доход

extreme - полюс subsidized - субсидированный

to get on - преуспевать