What is a public economic theory?
Public economic theory - which carries the economy of the alternative name of social care - has the idea that the allocation of resources should be carried out in a way to suit all individuals on the market. In most cases, the economy would benefit the most possible individuals in a one -time time through economic movements. One of the greatest principles of public economic theory is the redistribution of income or wealth; This means that the money of the most successful belongs to the individuals on the lower part of the economic scale. Individuals are the most important creators of decisions in this economy, not great entities or corporations. However, it may also be necessary to have a large government or central entity. This allows each individual to prosper and achieve goals that have the benefit of themselves and their families. The biggest problem therefore leads to individuals who do not want to work or do not have the ability to rise above their current situations. If this happens, the public economic theory states that the PřeroIt is necessary to ensure that these individuals achieve a certain level of success. The main problem, however, is that redistribution of wealth is often considered anti -capitalist in the free market society.
The two most common ways involved in the nation in public economic theory or social security economy is the use of command distribution or redistribution of wealth. The command economy solves problems because this institution measures natural or other economic resources to end users. Rather than a few ambitious individuals who gain a majority share of resources - which is possible in the free market - all individuals gain a certain number of natural or economic resources. The main objective is to Zdezajistěte that all individuals are equal in terms of economic wealth and livelihood. Unfortunately it is not as easily achieved as we firstThe benevolent individuals in command.
Redistribution of wealth is shifting the location of natural and economic resources from the command economy to individuals. Of course, the government may have to ensure that the redistribution occurs through taxes, fees or other methods. These processes collect revenue at one point and then redistribute them through tax loans, social security payments or other means to individuals with lower incomes. The result is to place a public choice - another principle of public economic theory - in the hands of individuals rather than a government agency. However, this does not have to continue forever because those who create greater income