Arguments for and against Government Regulation of the Economy (Term Paper Sample)
This is a critique essay to be followed with an opinion as to which side is correct. Title of Paper: Should the government intervene in capitalist economies? Must be written completely in APA 6 style. *NO ABSTRACT IS REQUIRED* Two conflicting viewpoints are within the PDFs I upload as part of this order must be examined and critiqued. 1. 1-2 paragraphs explaining viewpoint of each side. 2. 3+paragraphs explaining 2 weaknesses and 2 strengths of each argument. (critique each) 3. 1-2 paragraphs on whether capitalism is failing in the U.S. (i.e. income inequality, bank failures, government bailouts, etc). 4. 2+ paragraphs - Has capitalism failed in other countries? Name a couple and why it failed in those countries. 5. 2+ paragraphs : Relate to Occupy Wall Street movement in the U.S. <--- very important 6. Conclusion (2 short paragraphs) - Which side do you think is correct and why? ---I would prefer to take a LIBERAL approach rather than a conservative one. Personally, I think the PEOPLE of the U.S. should demand the economic reform, such as what is asked by the Occupy Wall Street Movement, but you may have a better idea--- ---. You can use the PDF files I uploaded as two of the references. ---. Three other references MUST be academic journal papers. ---. The remaining references can be news articles, documentary films, etc. but cannot be blog posts, etc. --- If possible, please provide me links to the articles you use as references so I can download or review them later (this paper is a foundation for another essay, which will be written in a couple of weeks. That will be 20 pages and if your service does a good job on this one, I will hire you to do the 20 page one next!!!!
Government Failure vs. Market Failure: Principles of Regulation
Joseph E. Stiglitz*
The subject of regulation has been one of the most contentious, with critics arguing that regulations interfere with the efficiency of the market, and advocates arguing that well designed regulations not only make markets more efficient but also help ensure that market outcomes are more equitable. Interestingly, as the economy plunges into a slowdown, if not a recession, with more than 2 million Americans expected to lose their homes (unless the government intervenes), there is a growing consensus: there was a need for more government regulation. Responding to these calls—as if to close the barn door after all the horses have gotten out—the Federal Reserve has tightened some regulations. If it is the case that better regulations could have prevented, or even mitigated, the downturn, the country, and the world, will be paying a heavy price for the failure to regulate adequately. And the social costs are no less grave—as hundreds of thousands of Americans will not only have lost their homes but their lifetime savings. Home ownership has long been thought of as contributing to the strength of communities; with the share of home ownership falling, communities too will be weaker. The foreclosures will exacerbate the decline in housing prices, and property tax bases will erode—a further knock on effect of inadequate regulation...
Arguments for and against Government Regulation of the Economy
Arguments for and against Government Regulation of the Economy
In the article “Government Failures vs. Market Failure: Principles of Regulation,” author and economist Joseph Stiglitz argues for the need of government intervention in a capitalist market. The author bases his argument on the general principle that government intervention is always intended to enhance social welfare (Stiglitz, 2008). History is full of cases and events that exemplify the failure of markets to regulate themselves efficiently. In an absolute free economy devoid of any form of government intervention, the market becomes a jungle in which only the mighty survives at the expense of the weak. Lack of perfect competition is one example that testifies the need for government regulation. Free enterprise encourages the rise of monopolies, which, if unwatched, can exploit helpless consumers with high prices and substandard products. Consequently, governments intervene from time to time to implement zoning restrictions and limit the free reign of anti-competitive forces in the economy. Similarly, Stiglitz points out that the irrationality of individuals and societies require government intervention. The model for a perfect competitive equilibrium assumes that individuals and societies are rational in their choices and actions. However, markets often suffer from irrational pessimism and exuberance, which results from market speculation. Under these conditions, it is easy for investors to make risky investments that may end up in huge losses. Since it is often the government’s moral responsibility to bail them out,(such as big banks that cannot be allowed to collapse) it has the right to discourage investors from taking excessive and costly risks through regulations.
In “Future Prospects for Economic Liberty,” Walter Williams argue against government regulation by referring to the principles of liberty and free enterprise as provided for in the American Constitution. Williams begins his argument by posing the question: What is the legitimate role of government in a free society? He observes that the government’s role is to promote justice and fairness. Accordingly, it is the government’s responsibility to promote individual freedoms, where individuals are free to own property without incurring unnecessary government taxes. Respect for private property is one issue that the author singles out as one aspect of liberty that the government violates through market regulations. He argues that the government has no constitutional right to tax private property in order to subsidize farms, car manufacturers, or bail out banks. Market regulation, therefore, departs from the principles of limited government that was envisioned by the nation’s founders (Williams, 2009, p. 2). Programs such as The New Deal limit free enterprise by taxing pri...
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