Question

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This is a graded discussion: 100 points possible
due Mar 22
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Unit 6 Discussion Board
44
In previous units, we have discussed two approaches to economics: Classical and Keynesian. While Classical economists prefer to have as little
government involvement in the economy as possible, Keynesian supporters believe that government involvement to solve economic problems and
prevent future issues is necessary.
We have also discussed the government's corrective actions in the stock market, which usually occur after a crisis has occurred.
So, do you think that the government should get involved in the stock market? Why or why not? Please be sure to post your opinion AND respond
to at least two other peers.Posts that are backed up with evidence and advance the conversation forward will receive bonus points!
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Answer 1

The Securities and Exchange Commission (SEC) regulates the securities markets and is tasked with protecting investors against mismanagement and fraud. Ideally, these types of regulations also encourage more investment and help protect the stability of financial services companies. Without government intervention, firms can exploit monopoly power to pay low wages to workers and charge high prices to consumers. Without government intervention, we are liable to see the growth of monopoly power. Government intervention can regulate monopolies and promote competition.