Supporters of central banking argue that it provides stability to the economy and allows the government to influence important aspects of the economy. However, central banking detractors argue that central banking unnecessarily expands the size and influence of government and leaves the economy more susceptible to corruption.
The pros of central banking are the establishment of a nationally recognized currency, the implementation of monetary policy and the ability to conduct independent audits. In the U.S., the Federal Reserve's primary method of implementing monetary policy is raising or lowering interest rate. Debate.org explains on their website that this allows the Fed to encourage borrowing and investment in a slow economy and control inflation. The Fed also audits member banks to ensure their financial health, a practice that without a central bank would be left to banks themselves. The cons of central banking include an expansion of government, limitations on the free market and the potential for corruption.
According to SubjectMoney.com, politicians and members of the public believe that a small government results in more freedom and that the concept of central banking is contrary to the core principles of capitalism because it takes control of some market forces away from the free market. Additionally, many of the people who work for central banks are former bankers, leading many to believe that central banks are highly susceptible to corruption and that central bankers do not always act in the best interest of the public.Learn More
Protectionism can promote the growth of burgeoning industries in developing countries, but it also leads to overall higher prices and reduced innovation. Government officials often implement measures of protectionism to assist the interests that keep them in office or to grow the public treasury. In general, all members of the global market benefit more from free-trade policies than from protectionism.Full Answer >
According to the Tata Steel Europe company, truss bridges offer enhanced stability and strength, and they are lightweight compared to other types of bridges. However, they can be expensive and time consuming to construct. Although the many supporting beams provide rigidity to the structure, truss bridges require careful maintenance to ensure that no vital components become damaged over time.Full Answer >
Debatably, there are many different pros and cons to operating business under a mixed economic model, such as balance in markets and government interference. These pros and cons are the result of having an economy comprised of privately owned and publicly owned establishments. As the name implies, a mixed economy has its appeal as a blend of capitalism and socialism.Full Answer >
A mixed economy is comprised of private and publicly owned businesses that are regulated by governmental organizations. In mixed economies, such as the United States, the government is responsible for using laws to control or break up business monopolies.Full Answer >