February 17, 2011
Over the years, there has been an ongoing debate on how much the government intervention there should be in our economy and job creation. The doctrine of laissez-faire created by French writers in the 1700’s states that the people itself should run the economy freely pursuing their economic interests. The economy of the United States is nowhere close to achieving the term of laissez-faire as government spending and intervention has increased a great deal. The government has spent over 37 trillion dollars in agricultural commodities, loans and marketing. The role of the government in our economy has come to a point where the negatives have outweighed the positives.
The government intervenes in the economy through the form of taxation. The government uses taxation money for many programs and defense that help support the country. Some of the money that the government collects is designed to protect consumers and help stimulate jobs in the economy. The reality of this situation though is that money is being taken away from consumers through taxes therefore decreasing the money circulation throughout the economy. The money movement is what creates jobs in the economy and as employment shrinks so does the money circulation. In essence taxes that the government imposes on its citizens is one step closer in destroying a job.
Tariffs are another aspect in which the government intervenes in our economy. The purpose of a tariff is to help the inefficient producers in our economy by forcing consumers to pay unnecessarily higher prices for consumer goods. Tariffs have forced people to pay higher prices for certain goods thus resulting in a lower amount of spending on other goods and services. When these other goods and services are not being bought and utilized is when companies make drastic cuts to their workforce. The hidden reality of the situation is that an increase...