Answer to Question #166996 in Economics for EUGINE HAWEZA

Question

Do you think that the state should be an active participant in the economic affairs of its  countryJustify your answer.

Answer 1

On the one hand, the state should support such "costly" but necessary sectors of the economy, such as the development of small businesses, the development of agriculture. And in the current conditions in Russia, and the development of import-substituting industries. The state has the leverage to “smooth out the negative effects” of the economic activity of the market and smooth out risks if, for example, a decline in some necessary production occurs.

 In my opinion, the opinion is that government intervention in the country's economy is necessary, but it should act more as a regulator than a manager. For example, there cannot be one water producer for the whole country, there cannot be a state monopoly on the production of one product, large mega-stores should not be built near the city, since this creates problems for transport. If the state does not support the economy but controls it, Thus, the country's economy can be called a command economy, which is best used in wartime.