Government's Role in the Fashion Industry

In “The Fashion Industry: Free to be an Individual” by Hannah Berry, Hannah emphasizes how social media especially advertisements pressure females to use certain product to in order to be considered beautiful. She also acknowledges the current effort of advertisement today to more realistically depicts of women. In addition, these advertisements use the modern women look to advertise products to increase women self-esteem and to encourage women to be comfortable with one’s image.

Taxation, the amount of money we pay every year and of course the government is a big spender has a lot of assets at its disposal to influence the economy. The government is a very large entity and controls a lot of money. Fiscal policy is more effective when trying to stimulate the economic growth rather than trying to slow down an economy that is overheating. The goal of fiscal policy is too accomplished by decreasing aggregate expenditures and aggregate demand through a decrease in government spending. Fiscal policy pros are; it can build up the operation electronic stabilizers. Well-timed fiscal stabilization together with automatic stabilizers can have an impact on the level of aggregate expenditure and activity in the economy. Fiscal policy can be picky by attempting specific category of the economy. For example, the government can be focused to concentrate education, housing, health or any specific industry area. Fiscal policy controls a spending tap. Fiscal policy can have a forceful effect if used in bankruptcy, because the government can open a spending tap to increase the level of aggregate

What are the main reasons why government should take only a limited role in a market economy?

The government does not necessarily need to intervene how the marker goes. Therefore, the competition is a significant factor of the free marker economy.Active but limited government is another main part of the free market economy. This means that the government undertakes a significant, active role in the market, but at the same time the government’s role is ver limited because all the investments and decisions in the economy are controlled by the market than by the government. An invisible hand will control the market. Limited government is a type of government in which there is a minimum intervention in personal properties. Overall, the government tries to keep the economy in a law and let it free by limiting itself. Hence, the limited government is an essential factor of the free market economy.Last, self-interest is a significant part of the free market economy. Self-interest refers to one’s desire to buy something. The market will be generally controlled by people’s interest; the companies will compete with one another to fit the best taste. This is because the people’s interest will be the main trend in the market and it will control what should be made in the market. Consequently, the market will be self-regulated according to the theory of a free market. Therefore, the self-interest is another significant factor of the free market economy.Therefore, the competition, the

Government policies positively or negatively affect the production and employment in the market economy. The following discussion highlights various policy actions by government, which results to different effects on the production and employment.

The system of capitalism and also called a laissez-faire system. The system operates on the principle of free market, where the role of the government is very limited. The main tasks of the government, as provided by Adam Smith, are maintaining law and order in the country, arranging money supply and strengthening national defense. The market system has different economic functions. However, government functions have increased over the long term (smith, A., 1779). The government is important in the economy as follows:

It is highly debated that the government should not intervene in free market in economics. Some people support government’s interference because that is how the economy should be existing. Others, however, firmly believe that the market itself has the ability to get out of the recession without any government’s involvement. I strongly believe that the government should not be allowed to intervene in our economy. Government involvement in the free market will simply cause more problems than it will solve.

One of the reasons the government spend is money is so that they can transfer tax revenue to the people of the economy through education, health service and social welfare. The government also spends money for public goods, public goods benefits the country in many ways for example the national defence is a form of public goods, national defence is the line of defence for the country meaning that hey protect the country.

Moreover, the current participation of government in the market economy remains almost similar. It however expanded its mandate to begin playing a critical role in business which includes providing public goods, protecting public health and welfare, safeguarding business, consumers, investor, and bring health competition in the market. More so the role of government is also to stabilize the economy, conserve the environment, regulation of working conditions and finally to protect business properties. All these engagement is to make business environment more favorable for both local and international investors for success of the country economy (Todeva & Knoke, 2009).

The topic I chose to write about was the clothing and fashion industry. Clothing is something that everyone in modern society needs, and something that a few consumers care very much about. The number one thing clothing is used for, besides covering and protecting our bodies, is to express our personalities, socioeconomic status, and how we feel on a given day. Because the the demographic for people who buy clothes is so large, it has a lot of variation. People buy clothes of many different qualities and prices, or they make their own.

Italian industry has grown immensely with the late 17th century induction of fashion apparels modernizing into the modern world of fashion entity. The industry has grown into upper class, high quality fashion accessory and apparel industry. The top companies have

Around the world, governments, mostly intervenes in the market in order to accomplish their policy objectives. The government’s policy objectives or goals could be related to economics, ranging from stabilization of prices, export promoting, encourage equal distributions for income and commodity protection. The examples as per above proves that government intervention is not only limited to economic effects but also influences the society. There are two (2) types of usual regulated government interventions, which are automatic and discretionary. Automatic can be defined as intervention which is based on rules and regulations. On the other side, government interventions which are discretionary mostly targets stopping, suspension or limitation of a certain contract market.

According to Fashion’s United “Facts and Figures in the UK fashion industry”1 almost 2/3 of jobs in the production of textiles, apparel, footwear and leather products were lost in the UK’s textiles manufacturing sector between 2000 and 2009. The sector that in 2000 has employed 285,000 people, in 2009 employed only 99,000. The same report states that this decrease of employment in manufacturing of textiles was strongly impacted by emerging markets like China, India and the new EU-27 member state industries like Bulgaria and Romania.

The fashion industry has been around for a very long time, and its impact is reaching people of all ages. Its influence has been, in many ways, negative. The progressing aesthetic of thinness has reached its way into modeling; because of that, the pressures on models and consumers have increased. Models feel the need to keep up a thin body image, as it is a part of a successful modeling career. If the models are not thin enough, about a size zero, a designer could easily find a replacement. In 2006, the Centers for Disease Control found that 5’9” and 110 pounds was the average for a female model. As models become thinner, women and teenagers have become obsessed with body images and how they “should” look. Even girls as young as ten-years old are terrified of being fat (Rodenbough). Sarah Murnen, a psychology professor, says, “The promotion of the thin, sexy ideal in our culture has created a situation where the majority of girls and women don’t like their bodies.” Young girls are trying to imitate the image being taken away from the models they see. Girls as young as ten are feeling the need to be skinny, and there is even provocative clothing available for children (Hellmich). This image that the fashion industry is sending is dangerous and can provoke eating disorders among models and others; although organizations have responded to the eating disorders, most of their regulations are not effective.

The issue of government interference in the economy is considered more than two centuries. One of the main reasons for intervention are market failures, with manifest limitations of the market mechanism, leading to inefficiency in allocation, production and distribution of resources.