Farmers play an important role in any society, of course, since they feed people. But farming has been particularly valued in the United States. Moreover, many Americans -- particularly immigrants who may have never held any land and did not have ownership over their own labor or products -- found that owning a farm was a ticket into the American economic system.
Should the government intervene in the economy? Tejvan Pettinger economics One of the main issues in economics is the extent to which the government should intervene in the economy. Free market economists argue that government intervention should be strictly limited as government intervention tends to cause an inefficient allocation of resources.
However, others argue there is a strong case for government intervention in different fields.
Hoover Dam built in the s with government funds This is a summary of whether should the government intervene in the economy. Arguments for government intervention Greater equality — redistribute income and wealth to improve equality of opportunity and equality of outcome.
For example, governments can subsidise or provide goods with positive externalities. Arguments against government intervention Governments liable to make the wrong decisions — influenced by political pressure groups, they spend on inefficient projects which lead to an inefficient outcome.
Government intervention is taking away individuals decision on how to spend and act. Economic intervention takes some personal freedom away. The market is best at deciding how and when to produce. Arguments for government intervention to improve equality In a free market, there tends to be inequality in income, wealth and opportunity.
Private charity tends to be partial. Government intervention is necessary to redistribute income within society. Diminishing marginal returns to income. The law of diminishing returns states that as income increases, there is a diminishing marginal utility.
For example, your third sports car gives only a small increase in total utility. Therefore, redistributing income can lead to a net welfare gain for society. Therefore income redistribution can be justified from a utilitarian perspective.
In a free market, inequality can be created, not through ability and handwork, but privilege and monopoly power. Without government intervention, firms can exploit monopoly power to pay low wages to workers and charge high prices to consumers.
Without government intervention, we are liable to see the growth of monopoly power. Government intervention can regulate monopolies and promote competition. Therefore government intervention can promote greater equality of income, which is perceived as fairer.
Often the argument is made that people should be able to keep the rewards of their hard work. But, if wealth and income and opportunity depend on being born into the right family, is that justified? A wealth tax can reduce the wealth of the richest, and this revenue can be used to spend on education for those who are born in poor circumstances.Start studying Econ Chapter 2.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. What characteristics does the United States economy have that allows it to resolve conflicts among goals?
modified our economy through increased government intervention in the economy in the form of programs like Social. Agricultural economics, study of the allocation, distribution, and utilization of the resources used, along with the commodities produced, by farming.
Agricultural economics plays a role in the economics of development, for a continuous level of farm surplus is one of the wellsprings of technological and commercial growth.
Economic interventionism (sometimes state interventionism) is an economic policy perspective favoring government intervention in the market process to correct the market failures and promote the general welfare of the people. In the United States, achieving economic equity and security has resulted in a _____ promoting of national goals, mixed economy, or modified private enterprise economy.
Explain how the basic economic decisions are made under capitalism. One of the main issues in economics is the extent to which the government should intervene in the economy.
Free market economists argue that government intervention should be strictly limited as government intervention tends to cause an inefficient allocation of resources.
Ag and Food Sectors and the Economy The U.S. agriculture sector extends beyond the farm business to include a range of farm-related industries. The largest of .