What Roles Of The State Affect Business In Australia’S Capitalistic Economy
...in a liberal society, where the existence of private property is fundamental, the government should not intervene in the economical affairs of the country, leaving the market free of restrictions and barriers. The economy will regulate itself through the balance between supply and demand: an “Invisible Hand” will regulate the market. In a liberal-capitalistic economy, those who have the capital pursue the profit in a market where government regulations and interventions are minimal or not present at all. The excessive use of power by the State might seem to be contradictory to the ideology of liberalism (Howe, 1986), in a world where the belief of the existence of a global free market is becoming more and more important. However, different countries around the globe use different roles of the State to control their economy, and different combinations of those roles produce a distinct outcome.
In Australia, where there is a liberal-capitalistic democracy (Ryan et al, 2003), the state is still interfering substantially in the economy through the use of various roles; for instance the parliament might decide to set up importation taxes aimed to protect the national economy, or it might create environmental protection laws aimed to protect the natural heritage of the country. There are infinite roles of the State that we can analyse, however this paper is going to discuss the impact of the regulatory role of the Australian government in the aviation (airline) industry and the subsidies (subsidizing roles) given to aboriginal communities in order to achieve sustainable grow and independence through the tourism industry.
Australian geographical position poses great challenges, especially when the need to interact with other countries is so important. The development of new technology and new form of travelling is the only way to connect this huge continent...
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