Economic Public Policy in the United States
Essay Topic:
Since the founding of the United States of America, the question of the role of government has been fiercely debated. In times of great economic stress, the populace has leaned on the government as a savior; during times of booming growth, those same constituents call for the dissolving of the very protections they sought during their times of hardship. The relationship between the government and its people is always caught in the turmoil of ever-shifting preferences. In this essay, please expand on the ideas of:
1. Is Economic Public Policy needed in the United States? If so, why? If not, why?
2. Does Economic Public Policy reduce personal freedom (through the economic lens)? If so, how? If not, explain how it does not.
3. What is the most optimal way a government should be run? I.e., choose somewhere along the gradient from Central Economic Planning to Lazie Faire Economics and explain why this is the best choice (through the economic lens).
Goals of this Essay:
● Demonstrate critical thought of Economic Governance:
○ What are the costs and benefits of the different pure/mixed economies.
● Critically analyze Efficiency Implications of the different economies.
● Critically analyze Distributional Implications of the different economies.
● Identify the difference(s) between distributional and efficiency tradeoffs under the different economic systems.
● Demonstrate critical thought over how you feel this country should conduct public policy:
○ Using supportive economic evidence to give weight to your argument.
FACTORS OF ECONOMIC PUBLIC POLICIES
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Every government comprises different sectors, and its power and success depend on the economy. Therefore, there is always a need to intervene in situations where the economy might be on a downward trend. Despite the need for government intervention when economic matters are going south, economic freedom is also important because it gives people the power to engage in productive activities that facilitate economic growth. When the government has to intervene by regulating the economy, it has to involve different stakeholders to understand the loopholes and the relevant actions that could be undertaken as improvement measures. Determining the type of economy a government should uphold is also crucial because different economies have varying impacts on the people. Distribution and deficiency tradeoffs are significant in sustaining an economy and determining future progress. Therefore, setting up economic policies and deciding the optimal economic structure to adopt within a government should be advised by the needs of the people, the potential, and the available resources for distribution.
Impact of Economic Public Policies on the United States
Economic Public policy is a law set by the government regarding resource allocation and distribution of income in an economy. Economic public policies are usually meant to save investors and achieve particular objectives such as economic growth, inflation, and employment rates (Salman, 2016). Economic public policies are crucial to some extent only when they are not over-implemented or over-exercised since they may cause significant hindrances against positive economic progress. When public economic policies are abolished, the economy might be at risk of suffering since monopolies are likely to develop in different sectors.
The main aim of implementing economic policies is to either slow down or boost economic growth, depending on the specific need for regulation. Suppose too many cartels are infiltrating the economy. In that case, the government is most likely to implement policies that will slow down the economy, such as increasing borrowing rates to prevent the cartels from benefiting alone. In situations where the economy is lagging, the government could develop policies to facilitate the process of production and lower borrowing rates to ease the availability of money to people in all economic classes.
Economic Public Policy on Personal Freedom
Economic public policies significantly impact personal freedom through the economic lens because they affect how private enterprises operate. With public economic policies in place, the federal government ensures that all businesses cooperate and adhere to the standards put in place. Based on the objectives and provisions of the public economic policies, it is clear that they limit personal freedom since they affect tax substitution, personal choice regulations, and expenditures on personal and corporate levels. Economic dictatorship is always the main idea behind the propagation of public economic policies to ensure the government implements strategies that are instrumental in protecting the economy to ensure stability and future growth without manipulation from monopolies (Tohmé et al., 2021).
Since most public economic policies are implemented in times of economic crisis, they affect most citizens since they ensure the implementation of strict measures to limit or regulate economic practices. This way, the giant industry players cannot act as they would since they must follow the guidelines. These policies ensure the prosecution of those in violation since the main purpose of their implementation is to protect the country's economy and ensure sanity in spending and borrowing. Sometimes there...