Should Government Intervene in the Economy During Economic Recessions?

Abstract

This research explores the implication of government intervention with two major hypotheses. By comparing major economic indicators under various United States and German presidencies in term of the extent of government intervention, this study demonstrates the idea that government intervention is effective in recovering from economic recessions by the measures of increased employment and production. Moreover, from the cases of China and India, I agree that countries with more government intervention in the economy tend to have less impact from economic recessions.