Economic interventionism

Economic interventionism, is a common term used to describe any activity, beyond the basic regulation of fraud and enforcement of contracts, undertaken by a government in an effort to affect its own economy. Economic intervention can be aimed at a variety of political objectives, such as promoting economic growth, increasing employment, raising wages, raising or reducing prices, promoting equality, or addressing market failures.

Economic interventionism is generally associated with the political left (socialist, left-wing liberal or green parties) which believe that certain market outcomes are undesirable and ought to be mitigated. Economic interventionism is sometimes operated by national conservative parties to avoid that the free market can damage national traditions,social order or the authority of the state itself.

Types of interventions

Economic interventions common in modern governments include targeted taxes, targeted tax credits, minimum wage laws, union shop rules, contracting preferences, direct subsidies to certain classes of producers, price supports, price caps, production quotas, import quotas, and tariffs.

Effects of Economic Interventionism

Economic intervention can be seen by more economically right-wing entities as provocative and damaging for the economy. However, most economically left-wing entities see Economic Interventionism as a way of ensuring the businesses in the country adhere to the social boundaries of that country.

ee also

*Mixed Economy
*Crowding out

External links

* [http://www.house.gov/jec/growth/function/function.pdf Size of Government]