Government Intervention - 1560 Words

Discuss the case for and against government intervention in an economy. In most of the countries, the government has intervened in the market system. To some extent there is a dire need of government intervention in the market system, although there is a debate over this point among the economists. Many economists believe that the role of government intervention improves the market system. The government can easily enforce the rules that can help in the smooth functioning of the market system. On the other hand, there are economists who believe that government interventions in a market system are the reason of inefficiency in the system. There are some goods that underprovided and underconsumed. Such goods are cold merit goods. They can†¦show more content†¦Information failure occurs when people have inaccurate, incomplete, uncertain or misunderstood data and so make potentially ‘wrong’ choices. Government action can have a role in improving information to help consumers and producers value the ‘true’ cost and/or benefit of a good or service. Examples might include: * Compulsory labeling on cigarette packages with health warnings to reduce smoking * Improved nutritional information on foods to counter the risks of growing obesity * Anti speeding television advertising to reduce road accidents and advertising campaigns to raise awareness of the risks of drink-driving * Advertising health screening programmes / information campaigns on the dangers of addiction Another advantage of government intervention is the national minimum wage. The national minimum wage was introduced into the UK in 1999. It is an intervention in the labour market designed to increase the pay of lower-paid workers and thereby influence the distribution of income in society. In October 2005, the value of the minimum wage for adults was  £5.05 – following a series of small increases over recent years. The main aims of the minimum wage 1. The equity justification: That every job should offer a fair rate of pay commensurate with the skills and experience of an employee 2. Labour market incentives: The NMW is designed to improve the incentives for people to start looking for work – therebyShow MoreRelatedGovernment Interventions are Failing1012 Words   |  4 Pagesworld, governments, mostly intervenes in the market in order to accomplish their policy objectives. The government’s policy objectives or goals could be related to economics, ranging from stabilization of prices, export promoting, encourage equal distributions for income and commodity protection. The examples as per above proves that government intervention is not only limited to economic effects but also influences the society. There are two (2) types of usual regulated government interventions, whichRead MoreGovernment Intervention And The Internet1094 Words   |  5 PagesGovernment Intervention in the I nternet A growing concern over our privacy online is causing us to seek legislation to protect us. Although this may seem harmless and beneficial for all, there are many valid points as to why the government should not intervene. When it comes to privacy online, the responsibility should be left in the hands of the people that disclose such information in the first place. Government involvement should not be allowed for the sake of our privacy, because it may comeRead MoreLaissez-faire vs Government Intervention Essay1555 Words   |  7 Pageswhich states that government generally should not interfere with decisions made in an open competitive market. These decisions include policies such as setting prices and wages. According to the doctrine of laissez-faire, workers are most productive and a nations economy functions most efficiently when people can pursue their own economic interest freely. The economy of the United States is no where close to being a laissez-faire system. In fact, gov ernment spending and intervention in the economicRead MoreGovernment Intervention On Kazakhstan Oil Industry Essay1449 Words   |  6 PagesStudent Name : Tinglin Zhang Subject : Assignment : Essay Topic : Government intervention in Kazakhstan Oil Industry The world concerned problem today the energy problem. Among other reasons of its country is growing thirst for oil and gas made thus a matter of strategic energy security. Oil is the stratagem industry of the development of economy and society. With the development phase of Kazakhstan’s oil resources is speeding, the world big powers seek the benefits here, Kazakhstan becomesRead MoreGovernment Intervention Vs. Self Regulation874 Words   |  4 PagesBusiness Ethics: Government Intervention vs. Self-Regulation Wealth brings power and power can at times bring corruption. In today’s economy where individuals are no longer the concern when it comes to wealth, the global attention is drawn to corporations who hold the majority of our wealth. This calls for us to take cetain measures that can ensure the existence of a socially responsible behavior amongst all corporations, and these measures could be introduced in many forms, quite possibly the mostRead MorePros and Cons of Government Intervention Essay894 Words   |  4 Pagespros and cons of how much government intervention in the marketplace is necessary and appropriate. This report will cover four authors, Cunningham, Green, Friedman and Pertschuk. The authors have written extensively on consumerism and the protection thereof. This author’s goal is to break down some of the theories, which authors seem akin in their beliefs and which authors’ views are bipolar opposites. Green states there be only should be two types of government regulations 1) economic regulationsRead MoreGovernment s Intervention On Healthcare System1031 Words   |  5 PagesSwitzerland, France and Sweden. Immergut chooses the three case studies because the three countries have different government’s intervention on healthcare system. The Swiss healthcare system is the most independence among the three. On the other hand, the government regulates the French healthcare system in terms of arrangements in doctor’s fee. And the Swedish government is the most centralized among them, because most of the doctors work for the government’s hospitals. Using the institutionalRead MoreGovernment Intervention For R D And Entrepreneurship2355 Words   |  10 PagesGovernment Intervention To Promote RD And Innovation In Small Medium Businesses Summary – SBIR Policy The societies in the world are facing severe social and economic challenges. The 2008-09 downturn in the economy has led to lessened potential growth output, rise in unemployment and soaring public debt. To recover from this, it was necessary that the nations come up with sustainable growth sources. The search for new sources comes to an end when the countries have adopted a productivity growthRead MoreEssay about Market Failures: Government Intervention652 Words   |  3 PagesMattera September 27, 2010 BUS 345 Essay #1 What is the basis for the contention that governments should intervene to correct market failures? (Be sure to explain what market failures are and why they are significant without providing superficial, rote definitions.) Contrast this with the argument that laissez faire is preferable to intervention. (If possible, link this to the idea of government failure, the iron law of public policy, rent seeking, and unintended consequences.) ImagineRead MoreThe Government Intervention And Its Effect On National Security1203 Words   |  5 Pagesand regulations to who is ultimately responsible and the one to assume responsibility when breaches take place. Whether it is the government or the private sector, someone has to take charge because we all have a vested interest in protecting our families, our businesses and our nation’s security in cyberspace. In this paper I researched into what government intervention is in the works when it comes to cybersecurity and protecting national security, the responsibility of the private sector as it pertains