
Concept introduction
Capitalism and socialism are often considered to be at opposite ends of the spectrum, but it is possible to have beneficial elements of one system present in the other system.

Explanation of Solution
Suggested response
Consider some ways that the United States might benefit from government intervention in the economy. One consideration might be how the government provides grants and tax incentives. If the United States was purely a capitalist nation, there would be no involvement from the government at all and these programs would not exist. Another consideration might be the government’s role in education. In a capitalist society, schools would only be privately owned. However, the United States has a large public school system and receives aid from the government in many different forms. Another idea to ponder is the aid the government provides to low-income families. Consider programs such as The Temporary Assistance to Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Woman, Infants, and Children (WIC), and Head Start. Finally, one of the most well-known program is the country’s Social Security system. Although this program is not completely funded by the government, as people pay into the system through their jobs, the government offers help with retirement, disability, and survivorship. Which of these might be considered the most effective forms of government intervention?
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Chapter 11 Solutions
The Real World
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