Social welfare in the context of "Subsidy"

A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.

Market economies range from minimally regulated to highly regulated systems. On the least regulated side, free market and laissez-faire systems are where state activity is restricted to providing public goods and services and safeguarding private ownership, while interventionist economies are where the government plays an active role in correcting market failures and promoting social welfare. State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning—which guides yet does not substitute the market for economic planning—a form sometimes referred to as a mixed economy.

In microeconomic theory, productive efficiency (or production efficiency) is a situation in which the economy or an economic system (e.g., bank, hospital, industry, country) operating within the constraints of current industrial technology cannot increase production of one good without sacrificing production of another good. In simple terms, the concept is illustrated on a production possibility frontier (PPF), where all points on the curve are points of productive efficiency. An equilibrium may be productively efficient without being allocatively efficient — i.e. it may result in a distribution of goods where social welfare is not maximized (bearing in mind that social welfare is a nebulous objective function subject to political controversy).

Productive efficiency is an aspect of economic efficiency that focuses on how to maximize output of a chosen product portfolio, without concern for whether your product portfolio is making goods in the right proportion; in misguided application, it will aid in manufacturing the wrong basket of outputs faster and cheaper than ever before.

The labour movement is the collective organisation of working people to further their shared political and economic interests. It consists of the trade union or labour union movement, as well as political parties of labour. It can be considered an instance of class conflict.

• In trade unions, workers campaign for higher wages, better working conditions and fair treatment from their employers, and through the implementation of labour laws, from their governments. They do this through collective bargaining, sectoral bargaining, and when needed, strike action. In some countries, co-determination gives representatives of workers seats on the board of directors of their employers.

• Political parties representing the interests of workers campaign for labour rights, social security and the welfare state. They are usually called a labour party (in English-speaking countries), a social democratic party (in Germanic and Slavic countries), a socialist party (in Romance countries), or sometimes a workers' party.
• Though historically less prominent, the cooperative movement campaigns to replace capitalist ownership of the economy with worker cooperatives, consumer cooperatives, and other types of cooperative ownership. This is related to the concept of economic democracy.

The labour movement developed as a response to capitalism and the Industrial Revolution of the late 18th and early 19th centuries, at about the same time as socialism. The early goals of the movement were the right to unionise, the right to vote, democracy, safe working conditions and the 40-hour week. As these were achieved in many of the advanced economies of Western Europe and North America in the early decades of the 20th century, the labour movement expanded to issues of welfare and social insurance, wealth distribution and income distribution, public services like health care and education, social housing and in some cases common ownership.

Welfare economics is a field of economics that applies microeconomic techniques to evaluate the overall well-being (welfare) of a society.

The principles of welfare economics are often used to inform public economics, which focuses on the ways in which government intervention can improve social welfare. Additionally, welfare economics serves as the theoretical foundation for several instruments of public economics, such as cost–benefit analysis. The intersection of welfare economics and behavioral economics has given rise to the subfield of behavioral welfare economics.

Social welfare, assistance for the ill or otherwise disabled and the old, has long been provided in Japan by both the government and private companies. Beginning in the 1920s, the Japanese government enacted a series of welfare programs, based mainly on European models, to provide medical care and financial support. During the post-war period, a comprehensive system of social security was gradually established. Universal health insurance and a pension system were established in 1960.

The futures of health and welfare systems in Japan are being shaped by the rapid aging of the population. The mixture of public and private funding has created complex pension and insurance systems, meshing with Japanese traditional calls for support within the family and by the local community for welfare recipients.