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Posted: December 11th, 2024
Government Intervention
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Purpose of Assignment
The theory of market economies emphasizes freedom of choice and limited government intervention. The classic argument for government intervention is market failure – the inability of the market economy to provide essential goods and services. Students will research and analyze real-world examples of U.S. government intervention programs and make intelligent conclusions about the economic policies.
Assignment Steps
Resources: FRED, University Library, credible business publications (see my Instructor Policies for guidance).
Select one of the following government intervention programs to review:
• US agriculture support programs
• Low income support programs (choose one)
o Housing vouchers, Rent Control
o Earned Income Tax Credit (including Child Tax Credit)
o Food Stamps
• Low income healthcare (choose one)
o Medicaid (including Children’s Health Insurance Program).
o Obamacare expansion
• Government promotion of renewable energy sources to discourage use of fossil fuels.
• Social insurance programs (choose one)
o Social Security and disability
o Medicare
o Unemployment Insurance
Develop a minimum 1050 word paper that includes the following
• Write a page paper – Describe the intervention and detail the market failure leading up to the intervention.
• Analyze the arguments for government intervention as opposed to arguments for market-based solutions. Hint: See the information in our course textbook on market failures.
• Examine who has been helped and who has been hurt by the selected government intervention.
• Examine externalities and/or unintended consequences of such intervention. (For example, do food stamps and health coverage for the poor result in higher future tax revenues because poor children grow up healthier and produce higher incomes over their lifetimes?)
• Determine the cost trend (or number of participants) of the intervention program since 2000. Discuss whether cost (as a share of GDP) or participation is increasing, decreasing, or varies with the state of the economy.
• Write a word essay – Evaluate the success or failure of the intervention in achieving its objectives and develop conclusions.
• Recommend whether the program should be continued as is, discontinued, or modified and defend your recommendation.
Note: The use of tables and/or charts to display economic data over the time period discussed is highly encouraged. You are encouraged to use charts/graphs retrieved from the Federal Reserve Bank of St. Louis FRED web site as long as the data sources used by FRED to create those charts are US government sources such as the Bureau of Economic Analysis or the Bureau of Labor Statistics.
Best paper writer websites, Custom term paper writing service and Research papers owl essays – Professional help in research projects for students – Cite a minimum of three academically credible references.
Format your assignment consistent with APA guidelines.
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