economic theory
There is wide disagreement about the degree to which government should be involved in the economy and for what reasons. After learning about the following competing theories about the proper role of government in the economy: laissez-faire, Keynesian, and supply-side economics, which do you believe works best and explain what is perceived as the ideal role of government in that theory. Are there any practical problems with your preferred theory?
Economic policy is often very political. Assess some of the political dynamics at work in the drafting and implementation of economic policies. What have been some of the key American values promoted through economic policy? Explain. When you review leadership in our past (presidents and congresses), does any era stand out to you where we have done a better job with our economic political policy? Why does that era stand out to you?
Is there anything we should do at this point in time in order to improve our current economic situation in this country?
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In my view, I would say supply-side economic theory does well in expounding the role of government in economics. This theory proposes that the most effective way to push for the growth of the economy is by reducing production barriers and promoting capital investment. The theory further insists that supply, as opposed to demand, is the real driver of economic growth so that when producers produce more the excess supply will force consumers to buy more since prices will be low……………………….
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