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economics essay


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economics essay

  1. 1. Economics, it may be argued, can be reduced to the study of how individuals and society meet their wants and needs. The source makes reference to the author’s opinions about the appropriate level of government intervention in the economy, especially during times of depressions. Liberalism as an economic ideology offers many options for citizens and governments in terms of dealing with economic stress. A supporter that holds left side values would argue that without government the economy cannot advance and will only worsen in a recession. The right would side would argue however that the healing should be done by the producers and consumers. Neither theory should be embraced completely however, in cases of extreme recession, government control is needed in order to stabilize the economy while rights should be completely restored and the economy is stabilized.<br />An individual who holds left side values, such as the philosopher John Maynard Keynes would argue against the idea’s presented by the source. John Maynard Keynes hypothesized that in the case of a recession, increased government spending and decreased taxes needed in order to encourage a revitalized economy. By putting money back into the economy the government is able to control the amount of consumer spending, which increases the demand for goods, which in turn increases the production. This process is part of the Keynesian economics cycle.<br />