Question

• Identify and describe a policy that interests you
• Review the readings on policy evaluation and evaluative criteria
• Using the evaluative criteria, effectiveness, efficiency, equity, and political feasibility, explain whether the current policy/bill effective? Why or why not?

Answer 1

Kenesian expansionary policy to nudge an economy in downturn interests me.

For a long time leaders followed classical economic policies of no government intereference in the working of an economy. According to the classical economists, whatever short term abnormalities were there in an economy, it was cyclical and that government should leave it to the markets to reclaim the equilibrium level.

But the great recession of the 1930s made almost one-fourth of the working age people unemployed, and the situation didn't improve on its on for years. It was then that John Maynard Keynes published his work and stressed on the importance of government spending during times of recession to help better the economic situation.

Many times till recently, we have seen the effectiveness of keynesian policy of government intervention.

The most recent example is the government stimulus package of $2 trillion to help the US economy fight the recession brought due to COVID-19.

The feasilibilty of the policy is very much evident with the history of the policy being most frequently used in recent history.