Prior to beginning work on this assignment,
Read Chapters 5 and 6 of Macroeconomics: Private and Public Choice.
Read Chapter 3 of Popular Economics, What the Rolling Stones, Downton Abbey, and LeBron James can Teach you About Economics.
Listen to Steve Forbes’ insights on this topic by viewing the video Can the Government Run the Economy? (Links to an external site.)
Watch the Q&A with Steve Forbes (Links to an external site.) video available in the window above.
Research and review credible sources to gain an understanding of the pros and cons of government intervention.
The role of government in the economy is often debated by economists and business people. The debate ranges from having little to no government intervention to having a strong government presence in both business and social settings.
Thinking through the pros and cons of government intervention, research and identify two government agencies, departments, or regulations where the government is heavily involved in the economy that you agree is helpful and necessary. Then, research and identify two government agencies, departments, or regulations where the government is involved in the economy that you disagree with and believe the free market would be better. Be specific in your selected government agencies, departments, or regulations. It may be possible to use the same government agency, department, or regulation for both sides. For example, the Environmental Protection Agency (EPA) may have regulations or interventions that you both agree and disagree with. Since EPA is used here as an example, do not use it in your assignment.
For each selected example (four total),
Assess the government intervention providing both the pros and cons.
Discuss whether you agree with the government intervention providing facts and support for your opinion.
Thoroughly explain and support your rationale.
Critique the influence of the political process (for example, lobbying) on each of your examples.
The Role of Government and the Impact of Politics paper
Government intervention is vital for businesses because it offers public goods unavailable in the public market. Another benefit is that government can offer merit services such as education and health the market underprovides. Furthermore, government regulations protect the environment, workers, and consumers. Government involvement in business is at times influenced by powerful pressure groups leading to unfair treatment of organizations. In situations where governments own businesses, they tend to monopolize leaving customers with fewer choices. As much as government intervention is critical, it can lead to politics, especially in parastatals, thus, lowering productivity and outcomes.