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Ahtasham

Should governments intervene in the economy during the times of economic instability?

Some would vote for complete control, while others would oppose any ideas of gov intervention. In between these two extremes, some believe governments should only intervene in in the economy to combat economic problems such as inflation or unemployment. What do you think? Why?
Russ:

That is at the root of John Maynard Keynes' theory of economics. It has worked in the past.

.:

the 'not so invisible' hand...

.:

although the federal reserve is a privately owned entity it has acted as an arm of the governments fiscal policies, primarily through controlling money supply by means of controlling the interest rate.
the government became much more involved after the great depression. their mission was to prevent the excesses of the monopolies throughout the banking system, in collusion with the stock market, which caused the market meltdown in the late twenties.
unfortunately, those regulations are no longer in force, leaving the usa open to the possibility of another possible major depression.
unfortunately also is that now the government has much less influence over financial matters

i believe the answer your question is a resounding yes, the government should intervene to prevent wild swings in our money markets, and to prevent abuse from those who would manipulate the system for gain by bilking the populace.
human nature the way it is, could any financial system work without the benevolent hand of the government supporting it?

just don't forget that the markets have been manipulated, by the self-same government to make the incumbent political party look good prior to any major election for the last twenty four years,(at least...:(

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