The role of a government in the market economy is one of the most debated issues in economics. Similarly, one of the most enduring debates on U.S. economic history focuses on the role of government in the economy. Some argue that government regulation of the U.S. economy is too little and too late. On the other hand, there is also a claim that the U.S. economy is no longer a free market due to too many regulations.
Read the Last Word piece, “Government Failure” (See attached) in the News, in Chapter 5 in your textbook “Should Governments Subsidize Corporate Relations?”. Investigate the use of special-interest lobbyists and its connection with the government failures. The process of lobbying legislatures is itself becoming a big business. State legislatures are under the same kind of pressure from interest groups as the Senate and the House of Representatives.
Questions
1. What are the roles of government in the market economy? Based on the current economic conditions, to what extent should the government intervene in the market economy?
2. What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?
3. Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group’s size.
Your assignment should have a cover sheet with the following information: Title of the paper, Your Name, Course Number and Section Number, and Date.
It must be a minimum of five pages long (excluding title page, references, etc.).
Be sure to include the criteria located in the rubric below within your paper.
It must be APA formatted with citations to your sources and your last page should list all references used. For assistance on APA format, visit the various writing resources, accessed under the Academic Tools area in the left navigation pane.
You must use a variety of three objective, high quality, and current sources. Peer reviewed articles, articles published in journals, textbooks, and library resources found in the Library are examples of high quality resources.
Note that Wikipedia, Investopedia, etc. are not considered as reliable resources for this research.