Laissez-Faire Economy Coursework Example | Topics and Well Written Essays - 1500 words

Laissez-Faire Economy - Coursework Example The resources are allocated by voluntary market transactions with very limited state intervention; the main role of government is to safeguard property rights of individuals. The belief is that both economy and the public would do without governmental involvement that may hamper the economy’s complete potential. However, a purely and effective laissez-faire economy is virtually non-existent; all successful national economies are buttressed by great and effective governments. Laissez-faire economies and liberal market systems lack adequate self-regulation mechanisms and this necessitates the government to intervene to prevent enduring economic crises and numerous social problems associated with pure Laissez-faire economy such as escalating income inequalities. Government’s intervention is also necessary to prevent market failure. Most economic systems are mixed with substantial state intervention, regulation and direction (Baumol & Blinder, 2011). State intervention in a n economy is critical to alleviate market failure. Frequently, market failure is an outcome of lack of information concerning the products available in the market among the consumers. In market failure, participants’ self-promoting actions fail to achieve an efficient outcome, so that it is possible to increase the welfare of one or more group of individuals without harming someone else welfare. Market failures can first result from an externality, which is an interdependency among two or more individuals that is not taken into account by a market transaction (Baumol & Blinder, 2011). An example includes pollution. Market failure may also be associated with public goods. A public good’s benefit can be received by payers and nonpayers alike once the good is provided. The provider cannot, therefore, keep a non-payer from consuming the good’s benefit, and this inability limits incentives on the part of users to finance the good’s provision. An example of suc h a public good is defense. A third source of market failures may stem from property rights that are either undefined or owned in common unrestricted or open access. Markets, which allow for the voluntary exchange of property rights, can only operate if these rights are recognized and protected. Common ownership when coupled with open access, would also lead to wasteful exploitation in which a user ignores the effects of his or her action on others (Baumol & Blinder, 2011). The presence of market failures means that some form of state intervention on a collective basis may be needed. Sometimes the state could be intervening as an outside authority to negotiate an agreement among the concerned parties. Fig. 1 (below): Examples of Market Failure and Ways the Government Intervenes To Remedy Them Types of market failure: †¢ Externalities †¢ Merit and demerit goods †¢ Public goods †¢ Natural monopolies †¢ Equity Types of government intervention: †¢ Taxes â⠂¬ ¢ Subsidies †¢ Regulations †¢ Public provision †¢ Transfer payments State intervention results into mixed economy system. This is where there is a merge of public and private organization and ownership of property. All rely on markets for some purposes, but also assigns some role to government. A mixed economy is one with some public (state) influence over the working of free markets. There may also be some public tenure amalgamated with personal property. It is more or less a blend of socialism and capitalism. In mixed

Evaluating the Impacts of Californias Criminal Justice Realignment Thesis

Evaluating the Impacts of Californias Criminal Justice Realignment - Thesis Example The results indicate that realignment has led to the reduction of felonies in prisons by 17%. Crime rate has also increased in the state; while there is lack of sufficient resources. Numerous problems such as overcrowding in jails have resulted from the relocation of criminals to jails. The lack of a solution to this problem may render realignment to be an ineffective solution to overcrowding in California. The state of California developed the criminal justice realignment legislation in May 2011. The state developed the realignment program following an order to reduce the number of inmates in prisons from the United States Supreme Court. The Supreme Court required the state to reduce the number of inmates from 180% to 137.5% of the capacity of the prisons by May 2013 (Green, 2014). This meant that California had to reduce the number of inmates in state prisons by 25,000. In response to the Supreme Court’s order, the state developed the prison realignment reform under Bill 109 and Penal Code 1170h in 2011. Bill 109 transfers the responsibility of imprisoning non-violent offenders from state prisons to county jails (Green, 2014). According to this bill, non-violent offers are those who commit crimes that are ‘non-serious,’ and ‘non-sex related (Hunter, 2013).’ This means that the prisoners who commit serious, violent, and sex-related crimes will be incarcerated in state prisons instead of county jails. The penal code 1170h, on the other hand, states that individuals who are realigned in county jails must undergo compulsory supervision; while out of custody. County probation officers conduct the Post Release Community Supervision (PRCS) (Caffiero, 2013).The code also requires those who disobey the mandatory supervision to be imprisoned in county jails instead of prisons. This is different from probation, which requires prisoners who are released from state