Should government intervene in the economy?
Debate Rounds (3)
This is best summed up Keynesian Economics. The theory, put forth by John Maynard Keynes, is that there will be ups and downs in the economy. The slow adjustment of prices and wages cause undo suffering for many people who, despite their best efforts, will not be able to stay ahead of inflation. In times of growth people will press ahead wildly, creating economic "bubbles" that will later burst and throw the economy into depression.
By adjusting tax rates and interest rates the government can assert a mild level of control over the economy. Times of growth can (and should) be slowed to prevent the uncontrolled growth that leads to sharp drops later on. The foundations built in a strong market can alleviate the problems that come with a weak market. There will always be ups and downs, but wise governmental influence can help even out the economic change so while the ups do no climb as fast, the downs do not drop as steeply.
Government's intervene in the economy will end in the results of tthe command system. The govermment will prevents free trade from other countries and we can't really trust government to intervene and controlling the economy. Corruption is over and over in a lot of countries now. Fascism will rules and authoritarianism will rise.
'If socialists understood economics, they wouldn't be socialists'
Keynesian economics is not just about government expenditure to recover from a recession. It is also about using times of growth to build a surplus that will bring the nation through hard times. It is about limiting both the highs and the lows.
The reason we have so much debt is that we have NOT practiced Keynesian economics. We have made expenditures to recover from economic downturns. However, we have been unwilling to make sacrifices during economic upturns. Instead we have just enjoyed the good times without preparing for the bad times. We could have avoided nearly all of our current debt if we had actually tried Keynesian economics
Since nearly every government in history has exercised some level of control over the economy, and not every government became fascist, it is clear that government intervention in the economy does not always (or even usually) lead to fascism.
Finally, what I am talking about is not socialism. It is a guided free market. I agree that socialism doesn"t work. That does not mean that the government should not intervene in the economy at all.
Daffa8799 forfeited this round.
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