Session 09: Systemic Thinking

Question 1

Relationship between capitalism and govt.

Answer 1

We went from kaynism → neo-liberalism ….
Basically capitalism does evolve over time and can change

Question 2

Govt Interventions

Answer 2

1. Regulations
2. Production
3. Taxes & spending
   Regulations are in place to reduce profit maximisation → creates tension between govt. & market

Question 3

GCI → Global Corruption Index

Answer 3

Countries with largest govts. are least economically corrupt

Capitalist ideology = govt. is corrupt

Question 4

Measuring Govt. Intervention

Answer 4

tax/GDP=%

Question 5

Fiscal Progressivity

Answer 5

As income is higher, tax rates are higher

Apply larger % to larger #

Question 6

GOVT & CULTURE

Answer 6

The more development of a country the higher the tax to GDP ratio

Question 7

SOCIAL MOBILITY →

Answer 7

result of meritocracy: the more you work the higher position you deserve

High inequality is associated with less economic mobility

Question 8

Capitalistic POV →

Answer 8

tax discourages economic activities (data disproves this)