goverment intervention essays

goverment intervention essays The U.S. economy is a dynamic, free-market system. The U.S. is often described as a mixed economy, which is that even thought the great majority of productive resources are privately owned, the federal government does play an important part in the marketplace. Although our economy has changed over the years, there have been certain issues that have remained since the early days. One is the continuing debate over what the right role of the government is in the marketplace. The economy is based on a free-market and is generally characterized by private ownership, with no government involvement. But government intervention has been used necessarily from time to time to ensure that, economic opportunities, are fair and accessible to all people, to prevent flagrant abuse, and to slow inflation and encourage growth. Ever since colonial times, the government has been involved in economic decisions. The New Deal programs of the 30s brought the greatest change in the governments role. Laws were passed to regulate economic activities form sales of stock to the right of worker to form unions. More importantly the government began to provide workers with economic security in their old age. The Social Security Program, enacted in 1935, still ensures that retired people have regular income each month. Both things have also been on the other hand, in the 70s and 80s with taxed rising and the economy stagnating, new national leaders began a drive to cut government spending and high taxation, and other thing to reduce government intervention, which oddly has saved the economy. Although based largely on free-enterprise, and organizing economic activity through open and competitive markets, the U.S. economy has a tradition of government intervention for specific purposes like eliminating monopolies, protecting the consumer, providing for the poor, handicapped and elderly, and pres ...