How Society Intervenes with
in How you Spend your resources
How Society Intervenes with
in How you Spend your resources
Pensions
Governments have compulsory pension schemes
because many individuals wouldn't otherwise invest
in pensions
Encouraging Desirable Behaviour
The Government can provide extra resources like grants
to promote cycling, solar panels, etc.
Redistribution of Wealth
They use the revenue to support those who
struggle to pay for basic needs.
Governemts tax those who earn more
Impact on Environment
The Government pass laws to change individual behavior
for the good of all.
An individual doesn't cause much damage but all individuals
together can
Value Added Tax (VAT) Rates
Lower or no VAT on items deemed as a need = baby food
Higher VAT rates on luxury goods/wants = chocolate
Societal Decisions
Usually the Government make these decisions
Infrastructure = Hospitals, roads, schools
