Search results
Results from the WOW.Com Content Network
Fiscalism is a term sometimes used to refer the economic theory that the government should rely on fiscal policy as the main instrument of macroeconomic policy. Fiscalism in this sense is contrasted with monetarism , [ 1 ] which is associated with reliance on monetary policy .
Public Economics focuses on when and to what degree the government should intervene in the economy to address market failures. [19] Some examples of government intervention are providing pure public goods such as defense, regulating negative externalities such as pollution and addressing imperfect market conditions such as asymmetric information.
A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reasons, including as an attempt to correct market failures , [ 1 ] or more broadly to promote public ...
Simply put, it refers to government intervention. [ 3 ] In economics the "visible hand" is generally considered to be the macro-fiscal policy of John Keynes that emerged in the 1930s as a remedy for the shortcomings of Adam Smith 's " invisible hand " and advocated government intervention in the economy. [ 4 ]
The first economic problem was how to gain the resources it needed to be able to perform the functions of an early government: the military, roads and other projects like building the Pyramids. Early governments generally relied on tax in kind and forced labor for their economic resources.
Some criticize industrial policy based on the concept of government failure.Industrial policy is seen as harmful as governments lack the required information, capabilities, and incentives to successfully determine whether the benefits of promoting certain sectors above others exceeds the costs and in turn implement the policies. [29]
The benefits even extend beyond immediate economic growth. The lease payments, royalties, and taxes paid to the American people in return for the development of the nation’s resources can yield literally trillions of dollars in new government revenue. Lower energy prices can ease the burdens on household budgets.
Lemon socialism is a pejorative term for a form of government intervention in which government subsidies go to weak or failing firms (lemons; see Lemon law), with the effective result that the government (and thus the taxpayer) absorbs part or all of the recipient's losses.