Question

Government policies and laws on products and inputs are good or bad? (300- 500 words ) as specific as possible.

Answer 1

There are divergent views about the question of goverment policies and laws on products and inputs to be good or bad among economists.

Most Keynesian economists do believe that there is a need for intervention in product and input(factor) market to regulate the quantity of the goods. This is especially significant when there is scarcity of some essential product at a time when it's a very important commodity e.g, hand sanitizer being an essential commodity during the crisis times of current coronavirus pandemic was declared essential commodity whose production is being regulated by the government which is the need of the hour. So, according to this tradition, goverment policies for product and input markets are good.

However, some economists mainly from classical, monetarists and new classical tradition advocate for minimum goverment intervention in products and input markets as they think that goverment stabilisation policies are not needed and in fact, lead to destabilisation in the economy. Thus according to them goverment policies and laws on products and inputs market are bad.