Size of Government and Intervention in the Economy Essay

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Introduction

The size of the government has become a sensitive issue in the last couple of years. The debate stems from the high cost of running the government. There have been concerns that a big government adds to the wage bill and does not help in service provision (Messmore, 2007). This paper will analyze the issue of government intervention in the economy while at the same time review the essence of the big government.

Size of Government

The emergence of an administrative state and the question of a big government reflects the phases, which countries go through. For example, the principle of administrative states was positive for managing the economy and, at the same time, offering direction to the nation (Gregg, 2004).

On the other hand, there have been different opinions on the state of a big government and how the latter could be an obstacle towards meaningful growth. It is necessary to note that government intervention is real and should not be underestimated. The economy requires a great deal of intervention in order for various elements to function properly.

The role of government in terms of intervening in the economy cannot be underestimated. There are many issues that surround the economy and, consequently, require urgent intervention by the government. For example, the question of social security is an important aspect that should be incorporated into any economy (Russell, 1935).

Social security means that citizens would be in a position of being cushioned against hard economic times during their working years and after retirement. Thus, the government is much needed in terms of developing a comprehensive social security mechanism that addresses the needs of citizens. This shows that, at some point, the government has to intervene in running the economy.

Intervention in the Economy

The second merit of a legislation such as the one mentioned above is that the population develops a savings culture. For example, social security requires that every citizen contributes to a fund upon which the funds are utilized at a later date. When most people embark on such a culture, the idea of saving becomes realistic.

From an economic point of view, a nation with a savings culture makes considerable progress in the long run as compared to regions where such funds do not exist. Social security can be described from the perspective of a fund that caters for the wellbeing of citizens.

Social security programs have been described as major drivers of progressivism. For example, when social security programs are unveiled, the government is able to initiate a considerable amount of economic development (Dreier & Flacks, 2003).

Progressivism entails making the right transition in relation to economic and social reforms. In this regard, the social security fund can be viewed as a social and economic tool that bolsters aspirations of any country (Halpin & Williams, 2010). In addition, these kinds of programs are important for estimating short- and long-term outlook of the country.

Conclusion

Economists believe that minimal government intervention is required for raising the economic prospects. However, little as well as no government intervention is not good and would lead to disastrous consequences.

In summary, it can be mentioned that social security programs are vital in terms of enhancing economic and social development of any country. As long as social security programs are firmly in place, there is every need to believe that the welfare of the people has been taken to account. Nothing beats a strong welfare system in any country.

Reference List

Dreier, P., & Flacks, D. (2003). Patriotism and progressivism. Peace Review, 15(4), 397-404.

Gregg, S. (2004). Markets, morality, and civil society. The Intercollegiate Review, 23-30.

Halpin, J., & Williams, C.P. (2010). Progressive traditions: . Web.

Messmore, R. (2007). A moral case against big government: How government shapes the character, vision, and virtue of citizens. Web.

Russell, B. (1935). . Web.

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IvyPanda. 2020. "Size of Government and Intervention in the Economy." March 26, 2020. https://ivypanda.com/essays/size-of-government-and-intervention-in-the-economy/.

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IvyPanda. "Size of Government and Intervention in the Economy." March 26, 2020. https://ivypanda.com/essays/size-of-government-and-intervention-in-the-economy/.

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