Question

What is a market economy, how have Americans tried to achieve a balance between government regulation of the economy and the freedom of individuals to make their own economic decisions? 

Specifically, trace the controversy over government intervention in the economy from the New Deal through to the present

Answer 1

The market economy is an economic advancement strategy in which decisions are made concerning production; investment and distribution are controlled by the price signals determined by the markets' supply and demand. Laissez-faire also monitors the market economies. The free market, which works well where the government plays an active role in protecting the market failures, enhancing market socialism and public ownership, is upheld (Pettifor & Ann, 2020). The U.S. economy is generally a market controlled by supply and demand with some minimal government interventions. The free market involves complete freedom for the buyers and the sellers without government intervention. However, the government is coming up with strategies to streamline the challenges encountered in the U.S. economy.

The policies adopted aim to protect the consumers, create affordable prices for buyers, and provide superior services and products in the market. Despite the government's efforts, individuals are free to make economic decisions regarding the profitability of the market. The 1960s New Deal strategies aimed at supporting the unemployed, youth, elderly, and farmers. The attempts to re-establish the banking industry and re-inflating the economy after the prices drastically went down resulted in diverse ideas. The New deal was considered hostile to the business and economic growth hence disputed assertions between the government and the buyers and the sellers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The market economy is an economic advancement strategy in which decisions are made concerning production; investment and distribution are controlled by the price signals determined by the markets' supply and demand.