1)Are there any arguments against the Government trying to help out the economy? What are they?

2)Economists do not agree with the government on the role of government interference in the market.

Do you think that it is necessary for the government to interfere with the operations of the market?

1)

Yes, there are arguments against the intervention of government in the economy.

They are;

a. The intervention of the government may take personal freedom from the people in determining their expenditure patterns. For instance, in the reduction of congestion, improving health, and reduction of the rates of smoking, and improving health conditions. This may include taxes, influences on behavior, and regulations. Citizens may feel that it could be burdensome and hindering their individual choices.

b. Goods produced by the government have a monopoly. The choice is a crucial element in economic freedom and the ability to maximize welfare in the economy.

However, not all government means less choices.

c. Government intervention could be originating from political pressure which could compromise the genuineness of the actions taken.

d. Actions of government could lead to expenditure on inefficient projects leading to undesired outcomes.

e. The market is usually the most efficient at deciding how and when to produce. The market forces of demand and supply are most effective in bringing the economy to equilibrium.

2)

Yes, I think that it is a necessity for the government to interfere with the operations of the market so as it can control and regulate the rate of inflation and reduce the rate of unemployment since the two factors tend to affect the economy as a whole leading to the weakening of the economy.

The government tends to have at its disposal many strategies and tools to control these problems. In the case where the economy is faced with the problem of high rates of inflation, then automatically, the central banks have the mandate to apply the measures necessary for combating the inflation rates. This can be achieved through the increase of the interest rates on deposits of commercial banks or through the increase of the tax rates. In the case of high unemployment rates, the government has the ability to establish brand projects that tend to respond to the issue of unemployment to the population and the same projects can eventually provide a positive return to the country in the long run.