Government Interventions vs. Market Based Solutions

Government Interventions vs. Market Based Solutions


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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 correct itself from a dysfunctional state (such as the Great Depression).

Examine one case of significant government intervention as it relates to your current industry of employment or an industry in which you are interested in working.  Examples of intervention programs include, but are not limited to:

    US agriculture support programs
    Low income support programs (Food Stamps, Earned Income Tax Credit, Child Tax Credit, and Temporary Assistance to Needy Families)
    Medicaid, Children’s Health Insurance Program, Obamacare
    Low income rent controls and housing vouchers
    Government promoting renewable energy sources, discouraging fossil fuel sources

Develop a 16-slide presentation including detailed speaker notes or voiceover including the following:

    Describe the intervention and detail its history.
    Analyze the arguments for government intervention as opposed to arguments for market-based solutions.
    Examine who may be helped and who may be hurt by the selected government intervention.
    Examine externalities and/or unintended consequences of such intervention.
    Determine the cost trend of the intervention program since its implementation.
    Evaluate the success or failure of the intervention in achieving its objectives and develop conclusions.
    Defend the use of or discontinuation of the selected intervention.

Note: The use of tables and/or charts to display economic data over the time period discussed is highly encouraged.

Cite a minimum of three scholarly references.

Format the assignment consistent with APA guidelines.

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