Economic Approaches
Since COVID 19 pandemic arises, the governments of countries across the world advised citizens of their nations to avoid unnecessary movement to other countries or locally to reduce the extreme spread of the virus. Similarly, Australian governments have given its citizens cautioning to keep off from inessential travel to other countries as well as limiting or cease local travel to reduce the spread of COVID 19 virus. The move of the Australian government to give directions on possible ways of lowering movement of its citizens has different effects on different sectors of the economy. Some of the critical areas that will be affected by the direction of the government that limit movement of both locally and internationally include social activities and economic activities. The primary aim of this paper is to discuss the best way the Australian government can implement the direction given to its citizens to avoid inessential travelling.
First, limiting movement of members of the public will have significant effects on demand and supply of goods and services within the economy. As a result, this will affect production, consumptions and pricing of products and services (Gelekci, & Kilic 2019 pp 20). According to neoclassical economics, and uncertainties affect the demand and supply in the economy. As well, COVID 19 pandemic outbreak in Australia these forces of demand and supply of essential goods and services in Australia have been affected due to the government directives that restrict inessential movement. Usually, consumers of a product or service maximizing their utility. However, to maximize personal satisfaction, the supply of goods and services should be sufficient to be able to meet the demand of consumers. Besides, consumers usually make their purchasing decision of certain products based on their evaluation and analysis of the utility of the product (Gelekci, & Kilic 2019 pp 20). However, during the time of lockdown in Australia, consumers of various products have not been able to evaluate the utility of products. Consequently, this has affected consumers’ consumption of certain products that should be assessed before purchasing thus affecting the effectiveness of government restriction of limiting its citizens for inessential movements.
Furthermore, the concept of neo-classical economics adds that individuals should be allowed to meet personal satisfaction despite any uncertainties. As such, the Australian government should ensure that members of the community get accessed to essential goods and services to enable them to avoid inessential movements to reduce the spread of COVID 19 virus (Gelekci, & Kilic 2019 pp 22). Therefore, this should be done by the government facilitating production and supply of essential goods and supply to members of the public to limit unnecessary movement of members of the public. If the government does this, it will achieve its aim of limiting or reducing movement among members of the community (Gelekci, & Kilic 2019 pp 22). Therefore, there is need for the government to take appropriate action to achieve it’s of minimizing movement by members of the public.
For the Australian government to successfully achieve its goals od minimizing or limiting movement of people to control the spread of COVID 19 virus, the supply of all essential products should be made available to members in variety and at strategic places where they are accessible to members of the public (Gelekci, & Kilic 2019 pp 22). In addition to making available such products, the government should ensure that the product supplied to members of the public matches their demand and are capable of meeting their needs. If the government ensure an adequate supply of demanded goods and services by the citizen, the aim of limiting citizen movement to control the spread of COVID 19 virus can be achieved (Gelekci, & Kilic 2019 pp 22).
Apart from the consumer demand for goods and service another economic theory of competition for goods and services during the financial crisis also affects the consumption of certain products. Usually, when the demand for certain products are high in some areas, suppliers tend to supply customers or areas with high needs (Gelekci, & Kilic 2019 pp 22). As such, this affects the effectiveness of achieving the government goal of restriction that limit inessential movement of members of the public. Therefore, for the Australian government to win the battle against COVID 19 virus limiting inessential movements of members of the public, the government need to ensure balance supply of goods and services among members of the public to ensure all members of the public satisfy their needs (Taleizadeh, & Sadeghi, 2019 pp 50).
However, to achieve the goal of limiting inessential movement of members of the public, the Australian government have attempted to supply some relief foods to members of public who have been adversely affected by inessential movement restriction implemented to reduce the spread of COVID 19 virus. In doing so, the government will succeed in limiting inessential movement by members during this period of COVID 19 virus pandemic (Taleizadeh, & Sadeghi, 2019 pp 50).
Behavioral Science Concept
Behavioral Science is a concept that relates to disciplines such as human action which covers areas such as psychology, sociology, social, cultural and economics, among other subjects. Since the outbreak of COVID 19 virus pandemic, these areas of studies have been adversely affected by the government directives restricting members of the public from inessential movement (Taleizadeh, & Sadeghi, 2019 pp 50). The concept of libertarian paternalism will be used in this section of this discussion to identify possible ways that the Australian government should use to contain the spread of COVID 19 virus pandemic.
According to economists, the concept of libertarian paternalism is relatively weak and nonintrusive kind of socialism since choice are cannot easily be blocked or burdened. The idea of this study infers that when members of the public fail to do something, there cannot be forced to do since this can lead to making thing hard for them. In relation to the Australian government implementing movement restrictions strategies to members of the public to reduce the widespread of the virus, it is inversely proportioned to the concept of libertarian paternalism (Taleizadeh, & Sadeghi, 2019 pp 50). The idea of this behavioural science states that individuals should not be forced to respond positively they feel to react negatively. As such, the concept of this theory does not align with the government directives that limit inessential movement of members of the public.
In general, limiting or restricting members of the public will affect cultural and social structures which are some of the key factors stated in libertarian paternalism concept. Social and cultural factors form key areas w in the economy because they determine the level of consumption of individuals (Taleizadeh, & Sadeghi, 2019, pp 53). When people in socialize freely, their demand for certain products changes because their preferences are influenced by those they meet. Based on the concept of libertarian paternalism, individuals should be allowed to do what they feel is right for them. However, to fight this COVID 19 pandemic, it is challenging for the Australian government to grant members of the public their wish of freely socializing as required by the concept of libertarian paternalism to keep all economic factors active. Therefore, for the Australian government to achieve the goal of reducing the spread of COVID 19 virus by restricting the inessential movement of members of the public, it essential for the government to find possible means through which the spread of COVID 19 virus (Gelekci, & Kilic 2019 pp 22). To do so, the Australian government should create accessible social structures that can allow the interaction of members of the public to enable them to share their consumption preferences and taste. When the government create structures and infrastructure that can enable consumers of certain products to interact freely, it will be possible to meet the interest of the libertarian paternalism concept.
Secondly, the libertarian paternalism concept requires that cultural factors should also be allowed to take effect among members of society. The idea adds that ensure the smooth running of economic activities members of a certain community should be allowed to meet their interest by allowing them to choose what they feel is best for them (Gelekci, & Kilic 2019 pp 22). Despite the Australian government aiming at solving the problem of COVID 19 virus, it is essential to consider the cultural factors of all members of the community. If the government does this, it will achieve its aim of limiting or reducing movement among members of the community. The government can do this by creating the infrastructure that allows consumers of certain products to interact freely; it will be possible to meet the interest the libertarian paternalism concept (Gelekci, & Kilic 2019 pp 22). These social structures should be efficiently accessible to all members of the community to increase consumption. According to economists, free interaction among members of increases consumption of certain products because be people will be able to share their consumption pattern, which affects other people purchasing decision.
Traditional Approach of Economics
According to this approach, most economical decisions that affect the consumptions of members of the public depend on factors such as, customs and consumption history. The approach adds that the most factor affected include factors of production and distribution of goods and services (Henderson, 2018 pp 178). Since the Australian government aim at maintaining physical distancing among members of the public, this approach will help to identify consumers taste and preferences to avail all publicly demanded products to members of the public. The traditional economics approach can be used to assess the consumption patterns of members of the public to satisfy their needs (Henderson, 2018, pp 178). To achieve this, the Australian government should encourage the supply of all essential products should be made available to members in variety and at strategic places where they are accessible to members of the public. As well, the government should ensure that the product supplied to members of the public matches their demand and are capable of meeting their needs.
The traditional economics approach also focusses on satisfying individual needs by taking into consideration the consumption history. In most instance, consumers of certain products or services tend to consume equal amounts or close to amounts they consume daily (Henderson, 2018 pp 178). Thus, this approach can be used during uncertainty like the time of COVID 19 virus pandemic. Using the concept of this approach, the Australian government should collect the consumption history of members of the public to use in making the supply of essential products to members of the public. The use of this approach will ensure right goods and services such as health care services are made available to members of the public at an affordable price to control unnecessary physical movement.
Health care services are among the essential services that the Australian government should maintain during the COVID 19 pandemic to satisfy the needs of members of the public entirely. Provision of quality health care to members of the public is one the main agenda captured in Australian and Act government responses due on 11 May which aim at ensuring that all needs of members of the community are satisfied (Henderson, 2018 pp 178).
Alongside the neo-classical economic approach, the traditional approach of economic is another essential approach that the Australian government can use to ensure members of the public maximize their consumption of essential services such as health care services. As such, the Australian government can use this approach to maximize personal satisfaction, the supply of goods and services should be sufficient to be able to meet the demand of consumers (Henderson, 2018 pp 178). In doing so, the government will succeed in limiting inessential movement by members during this period of COVID 19 virus pandemic. Therefore, the government adopt the use of approach to facilitate production and supply of essential goods and supply to members of the public to limit unnecessary movement of members of the public.
The Most Effective Approaches
The concept of neo-classical economics is the most appropriate economic approach that should be used by the government to achieve its goal of minimizing inessential movements of members of the public within the communities to reduce the spread of COVID 19 (Cinner, 2018 pp 888). The concept of neo-classical economic is the most appropriate because it considers consumers desires. As well, it states that individuals should be allowed to meet personal satisfaction despite any uncertainties. Intrinsically, the Australian government should ensure that members of the community get accessed to essential goods and services to enable them to avoid inessential movements to reduce the spread of COVID 19 virus. As a result, this can easily help the government to successfully control the movement of members of the public without interfering with consumption patterns of individuals (Cinner, 2018 pp 888). Therefore, the concept of neoclassical economics is the best approach to be used by the Australian government during this period of COVID 19 virus pandemic. The approach directly correlates with Australian and Act government responses due on 11 May, which mainly was focusing on ensuring physical distancing among members of the public.
Besides the neo-classical economic approach, the traditional method of economic is another essential approach that the Australian government can use to ensure members of the public maximize their consumption of essential services such as health care services. When using this approach, the government can be able to trace the medical history and ensure that those services are made available to members of the public at their nearest residential places to minimize physical movement of members of the public (Cinner, 2018 pp 888). Therefore, the Australian government can also consider this approach alongside the neo-classical economic approach to achieve its goals of reducing public movement
References List
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