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Is Government economic intervention a necessity?

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Is government intervention needed for our economy to run well? Why or why not?

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Is government intervention needed for our economy to run well? Why or why not?

For many decades the government intervened in the economy for so many instances. Some of those happened from 1890s onwards:

1890 - Congress enacted the Sherman Antitrust Act, a law designed to restore competition and free enterprise by breaking up monopolies.

1906 - passed laws to ensure that food and drugs were correctly labeled and that meat was inspected before being sold.

1913 - the government established a new federal banking system, the Federal Reserve, to regulate the nation's money supply and to place some controls on banking activities.
1930 - the "New Deal" of President Franklin D. Roosevelt's response to the Great Depression. Roosevelt and the Congress enacted a host of new laws that gave government the ...

Solution Summary

This solution looks at government intervention as an economic policy. It discusses when and how governments are expected to intervene in the economy. A timeline of government intervention were traced from the early 1930s to the present.

See Also This Related BrainMass Solution

Are there certain economic crisis that require government intervention?

One of the greatest debates in economics is between Keynesian Economists who believe that government intervention is necessary to restore the economy to its potential GDP while Classical Economists believe the market will correct itself. There are many resources on this topic from the internet including:

Federal Reserve Bank of San Francisco. Major Schools of Economic Theory: Keynesian School. Retreived November 15, 2010 from: www.frbsf.org/publications/education/greateconomists/grtschls.html#A8

Yergin, Daniel and J. Stanislaw. (1998) "The Chicago School" Excerpt from Commanding Heights pp. 145-149. Retreived November 14, 2010 from: www.pbs.org/wgbh/commandingheights/shared/pdf/ess_chicagoschool.pdf

Do you think there are certain economic crises that require government intervention (i.e Great Depression, Auto Industry failure, etc.)? Why or why not?

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