Political Science 2211E Chapter Notes - Chapter 5: Mixed Economy, Labor Rights, Social Choice Theory
4 Apr 2020
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Document Summary
On a theoretical side, progressive economics is primarily concerned with striking a proper balance between private and public action to ensure greater stability and equitable growth in the economy and better achieve national goals. It emerged in the late 19th century to deal with the realities of frequent depressions, workplace dangers, low wages, violations on labour rights, mass unemployment, environmental negligence, public health issues, and political corruption. On the practical side, progressive economics starts from the premises that markets fail and they are not self-correcting. Similarly, the private sector has little incentive to invest in key collective goods such as schools, roads, bridges and public transportation. The neoclassical tradition of conservative economics dismisses these failures as unimportant, arguing that markers are self-correcting. In contrast, progressives believe that government must step in to correct these failures of markets, restore efficiency, maintain full employment, and promote public needs and equity in society.
