1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marusya05 [52]
3 years ago
10

how does the government promote economic growth in capitalist countries and those transitioning to capitalism?

History
1 answer:
alexandr1967 [171]3 years ago
8 0

In capitalist countries (and those transitioning to capitalism), overt or direct government control of the economy is avoided. Instead, the government seeks to provide the infrastructure and security/stability needed in order for business interests to flourish and the economy to grow.

Direct government control of the economy was the pattern of "mercantilism," which was dominant prior to the rise of capitalism.  According to Adam Smith, one of the founding theorists of capitalism, mercantilism was bad because the government tried to regulate and control commerce too much. Smith, along with French economic theorists known "physiocrats" (wanting to let "nature rule"), advocated a "laissez-faire" approach to commerce and industry, letting businesses run themselves in competition in a free market.

However, for that free market to flourish, governments will do their part by providing infrastructure -- roads, ports, etc.  Governments also will ensure the stability and security needed for businesses to operate safely and consistently.  So governments will enact laws affirming rights and fairness in business contracts and enforce those laws, and also provide national security within their lands so that economic growth can flourish due to peaceful circumstances.  (Warfare causes great disruption to economies.)

You might be interested in
How did Japan's victory in the Russo-Japanese War both explode and create stereotypes?
jeyben [28]
The Japanese victory over Russian forces had shown the peoples of the Orient that Colonial Imperialists could be defeated and the Asian peoples could persevere in a war against the Occident.The Japanese gained renown that carried over into WW 2.

7 0
3 years ago
How are education,employment and income related
Setler79 [48]
They are all connected. You need an education so you can become employed in a career and then you make an income from that career.
5 0
3 years ago
An example of enforcement of the Roosevelt Corollary occurred when the United States
nexus9112 [7]
The correct answer is D.
Roosevelt Corollary is seen as an addition to the Monroe Doctrine in which the US stated it would not interfere with the politics of the European nations if they did not interfere in the Western Hemisphere. The Roosevelt Corollary was presented to the Congress  after the Venezuelan crisis and it states that US will intervene and mediate the conflicts between European and the nations of Latin America and enforce any claims of the European nations if they are legitimate.
6 0
3 years ago
Read 2 more answers
describe how geography divided the territory controlled by the inca Empire. then, explain how geographical characteristics affec
zheka24 [161]
The water help the geographical.
5 0
3 years ago
Westernization is founded on the blank tradition and Abrahamic and beliefs. Western ideas tend to emphasize freedom and blank
Brut [27]

Answer:

Greco-Roman and democracy

Explanation:

just got it right  

8 0
3 years ago
Read 2 more answers
Other questions:
  • A primary theme of artistic production between 1550 and 1650 was:
    7·1 answer
  • The forth crusade actually saw the Catholics conquer who they initially were trying to help
    15·1 answer
  • Why did free Americans have such conflicting views on slavery?
    12·1 answer
  • In the 1800s, unmarried women in America had
    5·1 answer
  • Which is an effect of the war reparations inflicted on Germany by the Treaty of Versailles?
    7·2 answers
  • Germany has about what percent of all the world's coal?
    12·2 answers
  • Who was an ally of South Vietnam during the Vietnam War?
    6·2 answers
  • Will give brainliest: so I’m a virtual learner but I have this classmate who texts me everyday asking if I can help her. I don’t
    13·1 answer
  • City-state includes the city and the surrounding farms and land.<br> True<br> False
    5·2 answers
  • After taking control of North Africa, Britain and the United States agreed that their next step would be to
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!