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Pros And Cons Of Government Intervention

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Economies have always struggled to prove whether a regulated government is more effective than a deregulated one, or just exactly how much intervention is required within a nation’s economy. This source favours government intervention in the economy and supports a modern liberal perspective, in which the government intervention present in the economy is there to provide aid to everyone. In order to improve the well-being of each citizen, this source claims that collectivism is more effective than individualism since it then aims for a greater good. The economic system is run through principles of supply and demand; through greater government intervention in the economy, as the source states, demand side economics would be more relatable. …show more content…

Keynes. Keynes believed government intervention was necessary during times difficult times, and thus in order to bring prosperity to the middle/lower class, government intervention would be applicable—so long as this intervention allows citizens to retain their freedom. I agree with the perspectives displayed by this source; believing that a certain level of government intervention is justified in order to aid citizens in improving their economic well-being.

Insufficient amount of government involvement can also have damaging effects on the economy, along with the citizens. An example of this is during the Great Depression (1930’s), when a free market with minimal government interference had limited the business cycle, with the crash or the stock market and inflation at its peak. Before the Great Depression, the economy was in prosperity; the stock market was doing well and unemployment rates were low. This put out the impression …show more content…

As the source states intervention is good, and sometimes it is needed however since no sense of too much or too little is delivered by the source is can only be just to assume that government involvement to a certain degree is truly what is beneficial to citizens and the economy. The New Deal, introduced by Roosevelt, was an example of government regulation during and during an ongoing crisis in USA. During the Great Depression, Franklin Roosevelt was elected as president (1933). During this time people were in eager need to assistance in order to improve their well-being. Roosevelt stimulated the economy by created many jobs to raise the unemployment rate through public works spending, restoring the banking system, and through this he focus on reducing the economic disparity of the citizens. Through his work, he was able to bring relief to the economy and society along with bringing reform to the industries. Roosevelt 's intervention in government helped end the Great Depression. (his policies implemented modern liberalism and also helped to calm the unforgiving harshness of the free market business cycle.) Thus, it is evident that the government providing aid through some degree of involvement benefits the nation and the

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