The core of most economics debates comes back to the three core questions that we are trying to answer (what to produce, how to produce and for whom to produce). Do you favor a laissez faire approach or government intervention? Why? How does the government approach impact economic growth in the long run?
- OiyLv 62 months ago
The two systems based on classical and Keynesian models can be used up and down. The US is a mixed economic system with high government intervention. But before the subprime crisis, the FED declined to intervene in the market, and it came to the collapse. So the market cannot solve everything. Or as Keynes said, in the long term we are all dead. So after 2008, it has come to the mixed economy again.
- 2 months ago
there are benefits to both... the government can sometimes help in the sense of preventing monopolization, but now a days (in the US at least) it seems companies find loopholes around certain laws... Also it seems competitors simultaneously raise the price on similar items (like when razor companies all went sky high on their shavers, simultaneously, and nobody said anything....) and the government didn' do nuffin…