How Society Intervenes with
in How you Spend your resources

Societal Decisions

Infrastructure = Hospitals, roads, schools

Usually the Government make these decisions

Higher VAT rates on luxury goods/wants = chocolate

Lower or no VAT on items deemed as a need = baby food

An individual doesn't cause much damage but all individuals
together can

The Government pass laws to change individual behavior
for the good of all.

Governemts tax those who earn more

They use the revenue to support those who
struggle to pay for basic needs.

The Government can provide extra resources like grants
to promote cycling, solar panels, etc.

Governments have compulsory pension schemes
because many individuals wouldn't otherwise invest
in pensions