World Issues

Intervention of the States in the economy

Benjamin Dijan Anaïs Pilloud
Marie-Lou Duparc Sahra Rezgui
Table of contents

Introduction p. 3

Argument 1: the government’s role is so important that it creates demand, consumption and thus is able to resolve unemployment problems and to build a stronger economy

By Sahra Rezgui p. 4

Argument 2 : A government does not necessarily need plenty of rules, laws and prohibitions but rather being more “involved” and thus more reagent.

By Sahra Rezgui p. 4

Argument 3: “the invisible hand” of Adam Smith

By Benjamin Dijan p. 5

Argument 4: The State asphyxiates the market through socials costs too expensive.

By Anaïs Pilloud p. 7

Argument 5 : Regulations arrive too late and are not renewable

By Marie-Lou Duparc p. 8

Conclusion p. 9

Introduction

For many years now, the financial crisis has been one of the main issue in many countries and for many economies. Indeed, such an event shows the limits of the liberal era we are living in and allows us to question ourselves about the government role.

A debate is one of the best opportunities to put forward the key points of an issue and analyse them.

Because of the complexity of the problem, we had a good chance to understand the system namely by analysing the intervention of the American government in the economy and linking it to the financial crisis.

Moreover, it was a real opportunity for us to get through a very constructive discussion with people that do not necessarily share our own point of view.

So as to succeed in defending a position, we had to elaborate very strong arguments. Even if our main goal was to convince about having a small government; we first ask ourselves about the two questions: - Should the state intervene in economies? - Or the market should be regulated by itself?

Many theories and examples have