Laissez-faire vs Government Intervention Essay - 1555 Words

Should our economy be run by a doctrine that was made popular by a group of French writers called physiocrats in the mid-1700s? This doctrine is called laissez-faire and it literally means to let or allow to do(The Family Education Network). It is a theory of economic policy which states that government generally should not interfere with decisions made in an open competitive market. These decisions include policies such as setting prices and wages. According to the doctrine of laissez-faire, workers are most productive and a nations economy functions most efficiently when people can pursue their own economic interest freely. The economy of the United States is no where close to being a laissez-faire system. In fact, government spending†¦show more content†¦This money movement is what creates jobs in the economy. quot;So, each persons money lost to taxes helps fail to create their part of a jobquot; (Kaz).nbsp;nbsp;nbsp;nbsp;nbsp; nbsp;nbsp;nbsp;nbsp;nbsp;Direct payments are another way in which the government attempts to help its producers. Deficiency payments, diversion payments, disaster payments, and marketing loans are all types of direct payments. Deficiency payments are payments based on the difference between the legislatively set target price and the lower national average market price during a specified time. Diversion payments are payments made to farmers who voluntarily reduce their planted acreage of a program crop and devote the land to a conservation use. Disaster payments are payments made to a producer when a disaster, such as a flood or drought, occurs and the producers crop is either destroyed or severely damaged. Marketing loans allow producers to repay nonrecourse loans at less than the announced loan rates whenever the world price or loan repayment rate for the commodity is less than the loan rate(Arthur amp; Mabbs-Zeno, 2). nbsp;nbsp;nbsp;nbsp;nbsp;There are many different types of input payments implemented by the government. They range from below-market grazing fees and below-cost rural electrification to fertilizer and irrigation subsidies to loan interest rebates. These input policies are designed to give the nations native producers an edge by making variousShow MoreRelatedEconomic Growth in the Late 19th Century Essay680 Words   |  3 PagesFrom the year 1865 to 1900 the United States government was attributed to following the standards of laissez-faire, an economic axiom in opposition of governmental moderation of or meddling in commerce beyond the merest essential for a free-enterprise organization to function according to its own economic regulations. 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