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Australia’s Economic Processes and Government Essay


Introduction

The modern Australian society is very demanding of people, the government, and businesses. The interdependence between taxation benefits offered through subsidies and the rate of interest, all have an effect on how the country is developing. International relations also play a role, as the products and services coming into Australia originate in other nations.

Analysis

The interdependent relationship between the government and businesses leads to changes in the economy and market. The taxation system results in economic stability which is largely linked to the governmental institutions, in connection with the society and public demands (Lloyd, 2001). On the residential level, income taxes are adjusted towards people’s economic status and contributions. In a business setting, functions of an organization involve intricate cooperation between the government, society, and the company, moving the economy in cities and pre-setting future governmental actions (Stegman, 2001). Many aspects depend on how the government allows businesses to function, and taxing a specific amount is a way to regulate the balance, as this point is not present in residential taxation. One of the key aspects of any business is to be able to interest the government, public, or society in the products or services that are being offered to people and organizations. In the case of international business, if it is seen as “required” by the government and society, then the tax would be lower to guarantee the return of businesses and partners (Kriesler, 1999).

In the relation of the Australian government to the people, it must be noted that ethics and subsidies are on a high level. The government understands that time spent at home, reflects on the quality of work. It is much greater compared to other activities, so proper working conditions have become extremely important. There are several reasons that offer explanations to such a trend that relate to safety, health guarantees, and leave or pension support. People’s residences and working regulations are the moving force in any society. Previously, living conditions were on a much lower level, but people had no choice. Australia was one of England’s colonies, and it would seem that the same rules and laws would be in both countries, but this was not the case. Welfare at home and in the workplace is a concept that is rather recent (Sol, 2005).

The global economic crisis has hit all countries, and those with a strong base had a better chance to get back into shape. It has sharply reduced the volume of production, which led to the breakdown of finances, caused widespread destruction and bankruptcy of residential, industrial, commercial, and financial firms, not to mention mass unemployment (Michelson, 2008). Something had to be done to increase the quality of living conditions, and a system of benefits in a form of subsidies was implemented. From one perspective it allowed people to have better support, which resulted in a stronger social fabric. People were provided with a healthcare plan, they were guaranteed pay or treatment in case of accidents or health problems. Some places offered paid vacations which greatly increased morale and people delivered higher output (Compa, 2003).

The interest rates were also affected by the current conditions. The main reforms have been carried out in the loan sphere, and a large number of laws covering all aspects of social, economic, and political life became crucial to society. To combat the main problem—the down falling of the economy, it has become difficult to lower interest rates with the decreasing value of the Australian dollar. For political reasons, the government paid special attention to the increase in employment among young people and the offering of employee welfare and benefits “sweetened” the deal (Dixon, 2002). In order to reduce social tension, it has been decided to organize simple public works, not requiring significant capital expenditures, thus alleviating the pressure from the increasing interest. These and other measures, in addition to its direct purpose, stimulated purchasing capacity, implementing the inflationary mechanism of the economy (Turnell, 2002). Construction of new factories, together with proper working conditions helped strengthen society. A new system of insurance provided a more secure and reliable placement and stability in the economy.

The government has to understand and adjust to the relationship between the cities and their industrial capabilities which will ensure a more stable environment for economic growth (Budd, 2009). Globalization has been one of the key aspects in the manufacturing and the spread of industry, so technological advancements and proper communication between different sectors of the economy are rather important. Innovation has become instrumental to Australian cities because it makes sure that the business and technologies stay current. The fluctuation of the market leads to citizens and businesses adjusting to the demands of the nation, and since the world is constantly evolving, innovation makes sure that any changes are adhered to accordingly (Ashenfelter, 2010).

Conclusion

It is clear that Australia’s economy is important among other world’s leading nations. As such, economics and social stability must answer to standards that would be most beneficial nationally, as well as globally.

Reference List

Ashenfelter, O 2010, Handbook of Labor Economics, Elsevier, San Diego, CA.

Budd, J 2009, Labor Relations: Striking a Balance 3rd edition, McGraw-Hill/Irwin, New York, NY.

Compa, L 2003, Human Rights, Labor Rights, and International Trade, University of Pennsylvania Press, Phillapelphia, PA.

Dixon, J 2002, The State of Social Welfare: The Twentieth Century in Cross-national Review, Greenwood Publishing Group, Westport, CT.

Kriesler , P 1999, The Australian Economy, Allen & Unwin St. Leonards, Australia.

Lloyd , P 2001, Reshaping Australia’s Economy: Growth with Equity and Sustainability, Cambridge University Press, New York, NY.

Michelson, G 2008, New Employment Actors: Developments from Australia, Peter Lang, Hochfeldstrasse, Switzerland.

Sol, E 2005, Contractualism in Employment Services: A New Form of Welfare State Governance, Kluwer Law International, Bedfordshire, UK.

Stegman, A 2001, ‘Labour Market Flexibility and the Output-Employment Ratio in Australia’, The Economic and Labour Relations Review : ELRR, vol. 12, no. 2, n.p.

Turnell , S 2002, ‘Australia’s ‘Employment Approach’ to International Postwar Reconstruction: Calling the Bluff of Multilateralism’, History of Economics Review, vol. 36, n.p.

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IvyPanda. "Australia's Economic Processes and Government." October 10, 2020. https://ivypanda.com/essays/australias-economic-processes-and-government/.

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IvyPanda. 2020. "Australia's Economic Processes and Government." October 10, 2020. https://ivypanda.com/essays/australias-economic-processes-and-government/.

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IvyPanda. (2020) 'Australia's Economic Processes and Government'. 10 October.

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