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). Students will examine articles from the University library to analyze real-world examples of U.S. government intervention programs and apply current week readings to make intelligent conclusions about the economic policies.
• 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, The Affordable Care Act (Obamacare)
• Low-income rent controls and housing vouchers
• Government promotion of renewable energy sources to discourage use of fossil fuels such as coal and oil
• Unemployment Insurance
• Bailout of U.S. banks and other financial institutions during the Great Recession
• Bailout of U.S. auto makers during the Great Recession
• Social Security retirement benefits
Develop a minimum 10-slide Microsoft® PowerPoint® 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. Hint: See the information in our course textbook on market failures.
• 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 including whether costs are increasing, decreasing, or vary with the state of the economy.
• Evaluate the success or failure of the intervention in achieving its objectives and develop conclusions.
• Recommend whether the program should be continued as is, discontinued, or modified and defend your recommendation.
