Government Intervention Is A Vital Necessity For Keeping An Economy Healthy

807 Words Apr 15th, 2016 4 Pages
Reflection on Analysis

Government intervention is a crucial necessity to keeping an economy healthy. In the Businessweek article, “John Maynard Keynes Is the Economist the World Needs Now,” there is a great focus on the global economy’s downward spiral and the need to follow the teachings of John Maynard Keynes’ ideology on the government’s need to step in and help the economy stay afloat. In my analysis of that article, I strongly agreed with the author’s, Peter Coy; need to address a focus on Keynes solution. Without listening to this solution, history will repeat itself in an underperforming economy like it has in the times of the Great Depression in the U.S or the times of economic uncertainty in countries like China and Japan.
The U.S economy is currently stable but that can change at any moment. Since the year 2016, is still very fresh, it is a little too early to make a good diagnostic on the direction that the economy will take. However, based on the feedback received from data gathered by economists in the previous year leading into 2016, the economy has had an economic growth of 2.4% and the unemployment rate has been at a stable 5% rate. Like I said in my original analysis, Keynesian policy only has relevance when a recession is ongoing. However, I would also like to add that now that the year is moving along, Keynesian domestic policy is already playing a huge role in 2016, despite the lack of a recession. This domestic policy can be seen in the growth of new…

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