Alternative perspectives on the role of government in a capitalist market?

Question 1

Identify the underlying values priorities of Market Fundamentalism

Answer 1

Market fundamentalists argue for a minimal role of government in the economy. They hold that individual freedom is the most important. Since markets are voluntary exchanges markets allow for individuals to pursue what is in their best interest and thus insure individual freedom

Question 2

Identify the general perspective Market Fundamentalism has on the role of government in the economy and why.

Answer 2

Limiting the role of governments in the economy protects individual freedom

Question 3

Identify 3 areas Market fundamentalists believe are valid areas for government intervention in the economy

Answer 3

1. A legal infrastructure that defines and protects property rights
2. The provision of a national defense
3. Government provision of a monetary system

Question 4

Identify a period in US history that economic policies followed market fundamentalist perspective and give 3 examples of such policies

Answer 4

• The Ronald Reagan administration

1. Reduction of taxes
2. Increased military spending
3. Limiting labor unions

Question 5

Identify the underlying value priorities of Market interventionism

Answer 5

• Economists that advocate for intervention in the market hold that the wellbeing of society as a whole which includes equal opportunity for everyone to develop their human potential at the pinnacle of their values

Question 6

Identify the general perspective market interventionism has on the role of the economy and why

Answer 6

• Market interventionists believe that the government has a responsibility to intervene in the economy to the extent that the market fails.

Question 7

Identify the five categories of government intervention that market interventionist advocate for

Answer 7

1. Regulation of markets
2. Provision of certain goods and services (education, libraries, mass transit)
3. Social insurance (FDIC, Social Security)
4. Provision of a safety net
5. Stabilize the overall economy

Question 8

Identify a period in US history that economic policies followed the market interventionist prospective and give six examples of such policies

Answer 8

• During the Obama administration

1. Stimulas
2. Obama care
3. Expanded government intervention the economy
4. Increased taxes
5. Regulated the internet
6. Intervened on behalf of unions slowing the creation of jobs in right to work states.