Discuss the Concept of "Salutary Neglect

question 67

Essay

Discuss the concept of "salutary neglect." Why did Britain follow this policy, and how did it both work in their favor and come back to haunt them?

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Definitions:

Excise Tax

A tax levied on specific goods or services at purchase such as alcohol, tobacco, and gasoline.

Elastic

Describes a situation in which the demand for a product or service significantly changes in response to a change in its price.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and fuel.