An investigative report on Welfare
Policy in the U.K. Market
Outcome 3
Candidate Name:
WANGGAI
Grade and Class: 11 Financial services class 6
Catalog
● Introduce
● Section 1
● Section 2
● Research
Introduce：This report is market failure and government's role and the social welfare policy survey report, report the information from the website as well as books, in a report last may elucidate.
1、Market failure： Market malfunction is due to intrinsic functional defects and external conditions caused by the defect of market mechanism in the allocation of resources in certain areas of operation. Because the market monopoly and price distortion or for the public goods character because of the asymmetric information and the external reasons, causes the resources disposition of invalid or small effect, which can realize resource to configure zero opportunity cost of resource allocation state. Usually used for invalid rate of special major, or non market mechanism is more efficient and the ability to create wealth is better when the private choice. On the other hand, the market failure is usually used to describe the market forces can not meet the status of public interest. Market failure establishes the basis for government intervention. The roles of government in attempting to correct these failures: merit goods, public goods, externalities and imperfect competition。Specific policy measures used by the government of the UK, such as competition, health care, transport etc. The market mechanism may fail to provide the optimal mix of output. The optimal mix of output is the most desirable combination of output attainable with existing resources, technology and social values.
Government intervention in economic activities, but complementary, grant of. The government in market economy economic role, is to remedy market flaw or insufficient needs a decision. The role of government can be divided into regulation of human character, commonweal character, control characters, the arbitrator roles and role of night watchman.
2、Public goods：The market mechanism works efficiently only if the benefits of consuming the good or service are available only to individuals who purchase it.
Public goods are common. Pay consumer items, such as national power grid, public radio, all kinds of public facilities consulting and so on, and provide these is the government, the government is responsible for the provision of public goods to let you use.
3、Externalities：In market economy, a main body of the market (consumer or producer) of the consequences of the Act (cost or revenue), not by the subject himself to bear, but by other subjects to bear, this is called external, or call the market externalities. Externalities cause of market mechanism in the allocation of resources function failure, is \failure\which is one of the reasons. For example, Western countries set up factories in developing countries: more emission of waste gas waste water in other countries, in domestic emissions pollution are subject to strict fine, the developed country takes industrial waste shipped to some developed countries, at the same time, give some benefits in terms of commitment, to maintain their environment.
4、Merit Goods: Merit goods are required by individuals on a basis of need rather than on their ability to pay. Where a free market economy may fail to provide merit goods as they could be financially unattractive, the government will intervene and provide such a necessity as education. For example, Air has the use value, is one of the three elements of survival, but no value, which could not be called commodities, if a person into the deep mountains and forests, with bottles and cans of fresh air is transported to the polluted city in sale, the air will have a value, may be called a commodity.
5、Imperfect competition：Imperfect competition refers to such market perfect competition cannot be maintained, because at least one large enough to influence the market price to the buyer (or seller), and therefore face a downward-sloping demand curve (or supply).Includes various incomplete factors, such as monopoly, oligopoly or monopoly competition. For example, In December 4, 1991, the United States
Pan-American Airlines went bankrupt, the enterprise continuous loss of business for 10 years, because it relies on to sell its assets to keep the business. It put their assets to billion price has sold to the American government, as well as the major companies and business tycoon.
Section 2
( a ) The welfare policy in U.K.
( b ) As a traditional bourgeois state, the British welfare policies are asset based,
now is at the forefront of welfare policy debate。The British educational, medical, buy a house, the endowment has a corresponding social welfare policy, this article introduced the UK housing welfare policy.
British housing welfare policy formation are also began in the late 40's.The economic crisis that experienced 30 time and the two World War, the British government is facing in the twentieth Century the most serious of the housing shortage. In order to social stability, promote economic recovery, the British government began to actively to build public housing, rental to the general public.1945 to 1975, the British government is directly built nearly 3900000 houses for the supply and improve housing conditions. This stage, the British housing number higher than the growth rate of population. According to statistics, in 1951 the British still lacks 800000 residential buildings, but by 1976 the UK is 500000 residential building. The British government has a large number of public housing to rent rental to ordinary people, can be said that the British housing welfare policy after the Second World War, Britain is a part of national revival. The British government put forward 1971 \rent\levels remained consistent, actually \housing rent. In order to fully protect low income family housing, the British