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If the government intervenes more in the market, what are the short-term and long-term results?

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The answer to this depends on which government you are discussing, what markets, and the precise forms of intervention. 

For example, in the wake of the financial crisis of 2008, many governments in the developed world intervened by reducing interest rates and increasing monetary supply as a stimulus and to prevent recessions. Although this sort of intervention was successful, such tools are limited as of 2016 by interest rates being at a historically low level. 

Another way governments can intervene in markets is by setting industrial policies that might include subsidies or tax breaks for favored industries. While some industries might benefit from such policies in the short term, over the long term they can lead to inefficient companies that rely on taxpayer subsidies for their survival. Such policies can also contravene various global and regional trade agreements and lead to trade wars. 

Another type of intervention is direct government ownership of essential industries such as utilities, railroads, hospitals, and communications infrastructures that function as public goods. Economists are divided on whether such ownership allows for greater access to common goods for people of all incomes or whether such state-owned enterprises tend to be inefficient.

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If a government chooses to intervene less in the market, what are possible short-term and long-term results?

Economic interventionism is an economic policy view that favors government intervention in the market. Interventions often take the form of regulations, policies, or subsidies. These may be administered in order to promote economic growth, increase employment, raise wages, raise or reduce prices, promote income equality, manage currency and interest rates, increase profits, or address market failures.  

Several factors may influence a government deciding to reduce its intervention measures. Through interventions, a government may make the wrong decisions, leading to inefficient outcomes. They may intervene under political pressure. All interventions restrict personal freedom to an extent. A government may view the free market as the best means for economic growth. Economies can also see positive effects of limited government intervention through increased efficiency. 

However, limited government intervention can also cause problems. In the short-term, large industries going out of business without government support can bring high regional unemployment and market failure. Market failure without government intervention can lead to underproduction of public or merit goods. In prolonged recessions, unemployment may not recover without government intervention. Another effect is greater likelihood of unregulated monopolies. Long-term effects can include greater inequality in income, wealth, and opportunity. 

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