Question

Analyze 1 of the following government intervention programs:

• Countercyclical fiscal policies (countering economic disruptions such as the housing bubble and the Great Recession)
• US agriculture support programs
• Assistance for Low Income Families (choose 1)
• Housing vouchers
• Earned Income Tax Credit (including Child Tax Credit)
• Supplemental Nutrition Assistance Program (SNAP)
• Low income healthcare (choose 1)
• Medicaid (including Children's Health Insurance Program).
• Affordable Care Act expansion
• Social insurance programs (choose 1)
• Old Age, Survivors, and Disability Insurance (OASDI)
• Medicare
• Unemployment insurance

Write a 700- to 1,050-word summary of your analysis. Identify the intervention and the market failure leading up to the intervention. Complete the following in your paper:

• Analyze the arguments for government intervention as opposed to arguments for market-based solutions.Hint:See the information about market failures.
• Examine who has been helped and who has been hurt by the selected government intervention.
• Examine externalities and unintended consequences of such intervention. For example, consider whether the SNAP program and health coverage for low-income families result in higher future tax revenues because low-income children grow up healthier and produce higher incomes over their lifetimes.
• Analyze whether cost of the intervention you selected as a share of GDP or the number of participants is increasing,decreasing, or varies with the state of the economy, based on the cost trend(or number of participants) since its inception or since 2000.
• Analyze credible economists’ opinions on the success or failure of the intervention that you chose in achieving its objectives.
• Recommend whether the program should be continued as is, discontinued, or modified based on your conclusions. Defend your recommendation.

References

https://www.congress.gov/bill/111th-congress/house-bill/1/text

https://projects.propublica.org/bailout/

https://www.bea.gov/

https://www.congress.gov/110/plaws/publ343/PLAW-110publ343.pdf

https://www.frbsf.org/

https://fred.stlouisfed.org/

http://www.oecd.org/

https://www.bls.gov/

https://www.census.gov/

Answer 1

Answer: Arguments for Government Intervention as opposed to arguments for market based solutions:

One of the main issues in economics is the extent to which the government should intervene in the economy.

Following are the points of arguments for government intervention:

1. Greater equality--- They redistribute the income and wealth to improve equality of opportunity and outcome.

2.overcome the market failure-- market fails to take into account externalities and are likely to under produce merit/public goods. Government provide goods with positive externilities.

3. It reduced unemployment by overcome the recession.

4. Disaster relief: Only the government can solve major health crisis such as pandemics as against market solutions.

Government intervention programs such as:

Medicare

housing vouchers.

Unemployment Insurance.

Benefits of Government intervention to peoples:

There are many advantages of government intervention programs such as even income distribution, no social injustices, secured public goods and many more. It helped many people who cannot afford these opportunities. Government intervention programs various facilities to people who are sick and disable.This increase net economic welfare and enables individuals to escape from the worst poverty.

There are various disadvantages also which affect the society such as:

1. Sometimes government fails to provide timely infomation to all which affects their work.

2. they provide lack incentives to public sectors and give weightage to private sectors.

3. sometimes they are influenced by the powerful pressure groups.

4. Government interventions may leads to less choices.

Consequencies of Government Interventions: Government interventions promotes competition, increase economic efficiency and thus promote fair and equitable distribution of income throughout the nations.

Economist opinion's on the Government Interventions:

Free market economics argue that government interventions should be strictly limited as it tends to cause an inefficient allocation of resources.

However, others argue that there is a strong case for government intervention in different fields such as externalilities, public goods and monopoly power.

Conclusion:

We can't think to run a society in real in the absence of government interventions. Although it has some advantages and disadvantages but it has been found that there is a need in some states regarding protection of property rights and spending on national defence.