Question

Some economists argue that the government intervention makes the economic outcome even worse. Some argue that there are important economic roles of the government. What is your opinion? Does the government do good or bad?

Briefly discuss.

Answer 1

Government intervention-Government intervention is regulatory action taken by government that “interferes" with decisions made by individuals, groups and organizations about social and economic matters.

I agree that it is a little of both. Sometimes the government has to step in and take charge. If they didn't, the system would crumble. Certainly, the government needs to regulate many aspects of business and economic practice. The system couldn't function if there wasn't a governing body in charge, governmental action to provide public goods is essential and beneficial. But when the government becomes overly intrusive, it can do harm.

Market structure is very uncertain, so it becomes very important for the government to take decisions accordingly or whether to interfere or not depends upon how sound is our market.

In India where is perfect competition there becomes necessary government intervention because it is truly not perfectly competitive, very few are monopoly and largely oligopoly.

At various places like traffic control should be assigned to private players and should be given good salaries and should be organized and chained by a number of people in a hierarchy i.e. there should be proper system or we can say organizational structure, because government intervention in some countries is exploited fully by traffic police itself by taking bribes. So, here should be no government intervention.

Role of government- There are various roles of Government

The main role of the government is to establish security and justice in the land and make sure the constitution is upheld and that the roots of this country are never forsaken in any way .To "establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity

Whether the government is good or bad really has to be looked at on a case by case basis rather than as a whole.