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30 November, 21:36

What negative aspects can result from more government involvement in the economy

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  1. 30 November, 21:40
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    It can be a bad thing because it can reduce growth.
  2. 30 November, 21:45
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    The correct answer to this open question is the following.

    The negative aspects that can result from more government involvement in the economy are an excessive intervention in monetary and fiscal policies to regulate the economy in the country.

    One basic function of the federal government is to regulate the economy to resolve issues that affect the market, and then, once is resolved, let the market continue to do what needs to be done. The problem with excessive government intervention is that it can interfere with the supply and demand that makes the market function. The government can create an unbalance in the economy if it implements more regulation, taxation, and subsidies. These can slow down economic growth or make people not work as hard as they should to be productive.
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