The Government

The Government

Sometimes not all the problems in the economy can be solved by firms and households or solutions are inappropriate. When this happens the government should step in and provide statute law or regulations to protect interests and property of businesses and households. For instance, tariffs on imported goods protect domestic firms but hinder the individual's ability to purchase goods at market price. On the whole, government interventioin is cumbersome to a free market society. [JP] {PM}