Essay about The Consequences of Excessive Government Intervention

684 Words 3 Pages
The fact that there are areas in which government is needed cannot be denied. The state collecting taxes for the provision of things such as roads, bridges, police departments, fire departments, or even a safety net for those that fall on hard times, as long as it is well regulated are all reasonable uses. I will also not deny that there are areas where central government intervention is needed. Regulation to prevent monopolies, ensuring segregation of public schools and facilities, and protection of rights, to name a few, are perfectly acceptable functions of central government. Big government is not the answer, it is actually a big part of the problem, especially when meddling with the economy. In this paper, I am going to dispute …show more content…
(Cowan, 1985). The economy didn't actually turn around until Ludwig Erhard, German Economic Director, introduced monetary reform and abolished all of the ACC economic controls (Cowan, 1985). Monthly production skyrocketed to highs not seen even after Marshall plan aid started to arrive(Cowan, 1985). Doug Bandow, senior fellow at the Cato institute, echoes Cowan's study by pointing out that the European economy that performed the worst, Great Britain, actually received the most Marshall Plan aid (Bandow, 1997). Madrick also points to LBJ's Great Society, and FDR's new deal as big government successes (McKenna & Feingold, 2012). There are many economists that can point to facts showing the New Deal actually prolonged the Great Depression. LBJ's war on poverty has not decreased poverty. When the war on poverty was enacted the poverty level was at 6%, today the poverty level, according to the 2010 census, is at 14% (CNN Money, 2010). If government intervention in the economy is indeed a good thing, perhaps Mr. Madrick can explain why poverty has increased since the enactment of the Great Society? Madrick believes laws that call for higher wages and aid in unionization are good for the economy (McKenna & Feingold, 2012). The
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