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Santa Ana College Market and Political Freedom Government Intervention Discussion

Santa Ana College Market and Political Freedom Government Intervention Discussion

Question Description

I’m working on a micro economics discussion question and need guidance to help me learn.

respond to each discussion below in 150 words say why you agree with each 300 words total. thank you!

My example that I found of government intervention in the economy with the intent of controlling prices is what is currently happening in Venezuela. According to the article,“Venezuela’s supreme court has awarded $13 million to top socialist party official Diosdado Cabello in a defamation case against a newspaper, but the paper’s lawyer said on Saturday the outlet could not afford to pay.” By controlling the paper supply, this is one of many tactics the government is utilizing to silence its critics. The government does not wish to be criticized and unfortunately controlling the paper supply is one of the less severe interventions. In this example the party that benefits the most from the government controlling paper supply prices is the Venezuelan government. The parties that are hurt by this intervention are the press and the people. In my opinion, I think the government made their decision to follow through with the choice because they had very clear consequences they wanted to see happen as a result of their intervention. My opinion on the matter is that it is dangerous to limit/outright deny free speech of a country’s citizens, especially when the citizens are criticizing the government when the government is clearly doing something wrong. I thought this next quote from the article was a great point, “In essence, people enjoying the benefits of the market process will question and undermine the power of authoritarian governments…Individuals who experience the benefits of freedom through market relations are likely to require freedom in the political process. The market and political freedom are internally linked: one generates and sustains the other.”

One of the topics that I found very interesting in this week’s reading is the governmental intervention on rent control and eviction. Since March of 2020, when COVID-19 was contagiously spreading throughout the nation, many county governments have been pushing forward their authorization controls on the amount of money that landlords could set for their rental properties. But as the number of people who got financially affected by the pandemic continues to grow, states and federal organizations decided to temporarily ban all evictions in order to help tenants keeping a roof on their heads. In these cases, the moratorium will benefit the tenants because they would not have to struggle to look for another place to rent or worry about not having a place to stay for the night. Furthermore, this intervention from the government would also bring an advantage to themselves because the number of assistance applications on housing would be less than when eviction can happen. On the other hand, the government intervention in evicting tenants will hurt the landlords of the property. With their usual source of income becoming uncollectible, there is a very high possibility that many landlords would not be able to keep the property for tenants to stay. Thus, this may result in a decline in the number of houses available for tenants to rent.

Looking at this intervention from an outsider’s perspective, I think the eviction moratorium will have some advantageous outcomes as well as disadvantage results to our economy. With the moratorium, tenants would be able to lift down the pressure of not having a place to live. Their family members and young ones would also benefit from this regulation, but since this is only a temporary rule, the tenants also need to be aware of the amount of money they owe after months of not paying rent. When these cases occur, many people would turn to the government for assistance-which is approximately 8.3 million renters according to the Household Pulse Survey (Forbes). From that note, we can see that the amount of money need to pay back for landlords will not be small; therefore, this may be a burden to both the tenants and the government in the long run. The eviction moratorium has definitely helped so many tenants through this tough time. But in order to efficiently revive the rental market, the government should reflect on the outcome of this temporary rule and look for alternative plans that could benefit everyone in the economy.

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