Government Intervention

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Government Intervention by Mind Map: Government Intervention

1. Government provides a number of programs to aid individuals in transition such as Social Security, unemployment insurance and health insurance programs

2. · to improve market infrastructure · to improve information · to improve institutional infrastructure.

3. Government intervenes to protect "open access resources" such as water and air.

4. The biggest advantage of government intervention is preparing for disaster situations, with the ability to deploy manpower and resources immediately.

5. A government can levy taxes on its citizens in order to create social programs, build infrastructure and create a military.

6. Tariffs put a tax on imported goods to make domestic products more competitive.

7. Wages

7.1. Governments can create a minimum wage for all workers. The government determines that anything lower then the minimum wage is not enough for a person to live on.

8. Taxes

9. Subsidies

9.1. The government gives certain sectors subsidies to produce goods. The government gives subsidies to lower prices on goods so exports increase.

10. Tariffs

11. Disaster Assistance

12. Environmental Interventions

13. Market Interventions

13.1. Appropriate interventions are thus indirect in nature and have three general aims:

14. Social Interventions

15. Arguments for Government Intervention

15.1. Market Failure

15.2. Macroeconomic intervention

15.3. Greater Equality

16. Arguments against Government Intervention

16.1. Personal Freedom.

16.2. Market is best at deciding how and when to produce.

16.3. Governments liable to make the wrong decisions

17. Arguments for Government Intervention to improve equality

17.1. Fairness.

17.2. Inherited wealth.

17.3. Diminishing marginal returns to income.

17.4. Rawls Social Contract.

18. Government Intervention to Overcome Market Failure

18.1. Public Goods.

18.2. Merit Goods / Positive Externalities.

18.3. Negative Externalities.

18.4. Regulation of Monopoly Power.

19. A government big enough to give you everything you want, is big enough to take away everything you have. Thomas Jefferson

20. We are imperfect. We cannot expect perfect government. William Howard Taft