The economy is, according to some, headed for a recession. President Bush has asked Congress to enact an economic stimulus package. Federal Reserve chairman Ben Bernanke agrees, as does Congress. Many of the presidential candidates (Romney, Clinton, McCain, Obama) have issued their own packages while some (Thompson, Kucinich) are not so sure.
I’m curious – if one believes in free markets, then government intervention seems to be a no-no. (The stock market fell immediately after the Bush announcement.) So I really have two questions.
First, do you believe it is the proper role of government to intervene? And secondly, if you do, why not in other cases, such as banning smoking in public places or setting usury interest rates?