For example i dont believe that either individuals or

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Unformatted text preview: n favor of the government limiting itself to doing what individuals or businesses can’t do. For example, I don’t believe that either individuals or businesses can supply the country with the national defense that it needs. National defense then should be left to government. Use the tax money to provide for the national defense, not to subsidize the farmers. And in my opinion, it doesn’t make sense for the government to be involved in programs such as Medicare and Social Security. I 14 (364-389) EMC Chap 14 11/18/05 11:00 AM Page 389 Yong Kim, retired attorney Blanca Sanchez, physician ere’s what I would like to know. If government is so bad—as Francine seems to imply—why has this country been as militarily and economically strong for so long? We have the largest economy in the world and we have the strongest and most capable military in the world. And we’ve done both of these things at the same time that the federal government has been getting bigger. If government bigness is so bad, how does someone explain that our economy is as strong and as big as it is? think what we are talking about here is that neither free enterprise nor government is perfect at doing everything. Sometimes the free enterprise economy does need government to help it out. For instance, when the economy is slumping, or we need something that free enterprise won’t produce, such as protection against terrorists, government needs to step in. But certainly this doesn’t mean that government has been perfect. Government can make mistakes. I think government can implement the wrong monetary policy— perhaps causing high inflation. I believe that government may implement a particular fiscal policy that doesn’t work because of, say, complete crowding out. My guess is that sometimes government does more to make things worse than to make things better. Maybe what we are learning over time is what government should and should not do, and what free enterprise should and should not do. In other words, maybe the last 50 years have been a learning period for us. H Nancy Owens, college student think Yong is making a mistake here. Just because you see two things at the same time, or nearly the same time, it doesn’t mean that one is the cause and the other is the effect. There are more dogs in the United States today than there were in 1950. Does it follow that a rising dog population is what causes the economy to be strong? Not at all. There are a lot of things that happen at around the same time that have nothing to do with each other. But I have a better point to make with respect to Yong’s comment. Isn’t it possible that we would have an even stronger economy, and a mightier military, if the government hadn’t grown so large? With a smaller, less intrusive government, perhaps our economy would be even larger than it is today. And perhaps our military would be even stronger. I I What Do You Think? 1. What is your opinion as to the proper role for government, especially when it comes to economic issues? 2. What goods and services do you think government should provide (using taxpayer money)? Is there anything that government currently does that you don’t think it should do? Explain your answer. Unit IV Macroeconomics 389...
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This document was uploaded on 01/16/2014.

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