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Government Intervention Essay

723 words - 3 pages

It is in my opinion that government intervention, though necessary in certain circumstances, should be largely limited to its role in protecting property rights, upholding the rule of law, and maintaining the value of the currency. The market itself is best at deciding how and when to manufacture its goods and it is unnecessary for the government to step in to try and improve the efficiency of the economy. One should look to the entrepreneurial creativity of millions who are willing to risk their own resources and reputations in order to progress our country. Before you place your trust in such entrepreneurs however, you should gain an understanding of the differences between political and market entrepreneurship as well as how government subsidies can undermine our economy in such a deceitful manner.
Before one forms an opinion on entrepreneurship, or on the big business tycoons who end up being dubbed as “robber barons,” you should understand the difference between the two types of entrepreneurs. You have the political entrepreneurs, who fit the classic mold of a robber baron, and who are commonly corrupt in the way they manage business. They take government aid, also known as a subsidy in this case, and have a propensity to waste the money, as it wasn’t theirs to begin with. They are not concerned with making a sound product, but with making as much profit as possible and getting the job done quickly, though not always efficiently. Furthermore, you have the market entrepreneurs who take little to no government aid and conduct business in an efficient manner. They are calculated risk takers who may take smaller steps towards their goal, but in doing this they learn how to do the work more efficiently, both time and cost wise. Well-known entrepreneurs such as Carnegie, J. Hill, Vanderbilt, and Rockefeller fall into this category. They are some of the market entrepreneurs that helped America flourish and become the global force that it is today.
The disadvantage of the government subsidizing and bailing out businesses is that in the future the business may lose the incentive to avoid bankruptcy, because they will be expectant of another government bailout. This type of...

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