Question

Construct a discussion on the different ways that government intervenes in your country. Support your discussion by citing real life examples of such intervention from reliable sources.

Answer 1

Government intervention is a universal phenomenon now a days. The main objectives of government intervention are to promote economic fairness, provides economic welfare etc.
The typical examples of such government interventions are ,

*The intervention of government to break monopolies in an economy.
* It is only the government, who can promote social and economic welfare. The unemployment alleviation programmes, steps to develop education and health sector and also maintains price stability
* During the time of recession, government should act as a recovery mechanism. The government spending should be raised and should reduce interest and tax rates.
* Government intervention is essential to maintain social stability by uplifting the backward and weaker sections of the society.
* The maintaining of law and order requires government mechanism.
*Even in the pure capitalist economy, government should have a predominant role maintaining socio-economic and political stability.
* The protection of public goods like environment and natural resources through government policies. Private players have less incentives to protect our environment unless strict laws are enforced.