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Prior to government involvement in the free market recessions occurred as they always will in cycles. What goes up must come down type of thing. These recessions were pretty short lived and lasted a year or so and corrected. But around the turn of the 20th century politicians began to place the blame for these recessions on the political party in power. By doing so when the economy improved while they were in power they could take credit for it. That is when the problems really began. The free maket will correct itself and it will do it fairly quickly but when the politicians began to try to "make" it correct itself by dabbling with the monetary system (such as creating the fed) it started taking longer and longer for the market to fix itself.
Still today, the people want and expect their government to save them from these recessions and there is political power to be gained from it so politicians rationalize that they have better ideas than the people who actually work in the money market and business and continue to try and "fix" the system.
What else can I help you with?
What is market based economic system with limited government involvement?
Market Economy
What factor is key in differentiating subsistence economies from market and planned economies?
The amount of government involvement in the economy.
Which of the four econoic systems has the most involvement with the government?
Of the 4 economic systems the one that is most directly involved with the government is command economy. The definition of command economy is an economy where supply and price are regulated by the government rather than market forces. Government planners decide which goods and services are produced and how they are distributed.
Is the USSR's government a free market economy government?
yes it is a free market government
Is it a free market economy or a government controlled economy in haiti?
It is a controlled by the government
What is market based economic system with limited government involvement?
Market Economy
What factor is key in differentiating subsistence economies from market and planned economies?
The amount of government involvement in the economy.
Whih of the following did NOT contribute to the stock market crash of 1929?
The Treasury Department's active involvement in the economy.
Which of the four econoic systems has the most involvement with the government?
Of the 4 economic systems the one that is most directly involved with the government is command economy. The definition of command economy is an economy where supply and price are regulated by the government rather than market forces. Government planners decide which goods and services are produced and how they are distributed.
Is South Africa a market or government economy?
South Africa has a market economy.
Is the USSR's government a free market economy government?
yes it is a free market government
Is it a free market economy or a government controlled economy in haiti?
It is a controlled by the government
What is most essential for an effiecent market economy?
Private property, specialization, consumer sovereighnty, seller competition, seller profit, voluntary exchange and minimal government involvement.
What is a market economy regulated by?
The government.
What is market economy regulated by?
The government.
Why is the Canadian economy identified as a mixed market economy?
Why did Canada choose a mixed economy? 1980 US president, Ronald Reagan, supported less government in the economy to reduce government spending and regulation of corporations. Canadian prime minister, Brian Mulroney, fallowed Reagan's example and fought for the shift right (less government involvement in the economy) in the economy in 1984. Ever since than there has been shift lefts and shift rights everywhere. therefore, Canada is a Mixed economy :)
How market and government failure in Tanzania provide a rationale for designing an economic policy?
to solve working job
