Question # 3: Discuss the following statement by agreeing or disagreeing with it

Question

Question # 3: Discuss the following statement by agreeing or disagreeing with it and providing an argument to sustain your position. Make sure you use material assigned throughout the semester "Capitalism and Democracy are the two sides of the same coin. It is markets that give us freedom to choose while the government and its laws constrain that freedom. It is also through the market that free-enterprise and creativity manifest. Therefore it logically follows that the less government intervention we have in the economy the better society will be."

Explanation / Answer

I don't agree with the statement because, capitalism is solely for profit making purposes. A capitalists thinks and works only for his/her own profit rather than to think about benefit, well being and welfare of others. On the other hand, government intervention makes sure that no one is being exploit and everyone is getting the benefit. Government intervenes in market activities by many means, one of those are price ceiling and flooring, by these two govt protects both consumers and producers from any kind of exploitation. Also, they take taxes progressively to reduce income inequality, provides subsidies and employment to larger population. Hence govt intervention is necessary for a good economy.

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