Point of comparison the gini coefficient for sweden a

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point of comparison, the Gini-coefficient for Sweden – a country that has done exceptionally well
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in maintaining equality and the strength of its economy – has a coefficient of 0.28. Clearly, Canada still has room to progress but has made progress in terms of striving for a more equitable society. Positive externalities sound fantastic but in reality can cause market failures. This is because the market will produce and price their product at an inefficient/market equilibrium as opposed to the socially optimal equilibrium. For education, it is the government’s responsibility to identify and internalize the externality so that the market can produce at an efficient and socially optimal outcome. Currently, Canada provides free public education which is a significant step towards narrowing economic inequality and internalizing the externality. However, more can be done. For instance, free post-secondary education takes a step towards completely internalizing the externality. This is because the price of tuition is staggeringly high and for many students, the opportunity cost of taking a pricey post-secondary education outweighs the possible benefit they may be able to receive. Thus, these students will go straight into the workforce and not be able to contribute to society as profoundly. An example of this is seen with aboriginals who lack education and represent a large portion of low-income workers within Canada. The Canadian government has taken steps such as providing free post-secondary education to “Status Indians” but many First Nations, including Metis and Non-Status Indians, are not eligible and therefore become marginalized. If post-secondary education was subsidized and free for these students, the marginal private benefit would shift towards the right – closer to the marginal social benefit. This means more aboriginals within Canada will be able to become more employable and receive higher pay, helping to narrow economic inequality. Internalizing the externality education creates and producing an efficient market outcome will in turn help to alleviate wealth inequality and poverty within Canada. -post-secondary-education-1.3414183
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