Governmental Economic Intervention

Since the opposition decided to forfeit the discussion will return to the idea of the prevalence of the market economy. A laissez-faire "hands-off" governmental approach to the economy allows for the "invisible hand" to guide along the economy with individuals acting in their own interests and making for the most efficient allocation of resources. The ideals behind this approach allowed for America to become the world"s largest and most thriving economy in the world. Economic governmental intervention is also an inevitability, but it is the extent to which the government should intervene that remains contested. It has always been the government"s role to establish an environment of economic freedom by ensuring property rights, a stable currency, and free enterprise. The latter includes market regulations and consumer protection; with the industrial revolution came vast growth but also the need for regulation. Additionally, with the Great Depression came the Keynesian approach of governmental stimulation during times of recession. Milton Friedman also argued for governmental regulation during "boom times" of vast growth in order to minimize the fluctuation of the business cycle. (Krugman). In short, the role of the government in the economy is imperative; the government should utilize fiscal and monetary policy in order to maximize relative growth and minimize market fluctuations. However, this merely requires action on the part of the Federal Reserve and the executive governmental branch. It requires intelligent and responsible intervention for the sake of growth rather than irresponsible intervention for the sake of principle. Now that the necessity of governmental intervention has been established, the implications of it will be discussed. The only efficient and beneficial governmental intervention is that which is necessary in order to uphold the free market. Even Karl Marx warned of haphazard intervention, "crack-brained meddling by authorities [can] aggravate an exciting crisis." (Sowell, Thomas). The market economy is the supreme economic force that allows for long-run growth. Governmental intervention is acceptable when it is utilized to uphold the market economy. Much of the governmental intervention and establishment of social welfare programs during the attempted recovery of the Great Depression was damaging to the economy. Many social welfare programs are holistically damaging to the economy. Other programs are beneficial to the economy; the Food and Drug Administration, for example, is beneficial because it allows for the overall health of the American people. Unlike the FDA, however, the Department of Human Services quite literally siphons tax payers" dollars in order to provide money to eligible low-income households; the result is unnecessary governmental spending that detracts from the workforce and causes a disastrous dependecy upon governmental handouts. It is not the fault of said low-income households, rather it is the fault of the system that the government has instituted. Additionally, altruistic social welfare programs are imperative but should be left to Non Profit Organizations of the private sector. In conclusion, governmental economic interference is inevitable, but it is only beneficial when it is utilized responsibly and intelligently. Works Cited Krugman, Paul and Wells, Robin. Economics, Second Ed. Worth Publishers. Print. Sowell, Thomas. "Governmental Intervention in the Economy." N.p. 9 September 2010. Web. 22 October 2013.