Written by Casey Christianson.
When it comes to government involvement in the economy, many politicians disagree on what the correct approach is. Some believe that government is the most important part of getting the economy out of a recession and recreating jobs for unemployed citizens. Others believe that the government should just leave it alone and let the market system run its course. I personally believe that government should have very little involvement when it comes to stimulating the economy. Many times when government tries to get involved, it helps a small amount of the population, but the effects on the vast majority of people are negative. For example, if government increased the minimum wage from eight dollars to 10 dollars, it may seem like a generous action and those employed under a minimum wage salary would be extremely grateful. In reality, though, the raise in minimum wage causes business firms to want to hire less workers, thus creating further unemployment. The way the market works is that producers and consumers sell and buy out of their own self-interest. There is always a demand for people in the workforce and there will always be a supply. When government plays a minimal role, the market system takes over, people naturally fall into place, and supply and demand will both be satisfied. Therefore, the best way for the economy to grow is through minimal government involvement.
video by LearnLiberty